CNX-Bank Index--Technical View---9-2-2015

CNX-Bank Index closed at 18786.70 on 6-2-2015

SUPPORT: - 18736.65 / 18728.20 / 18517.90 / 18479 / 18428 / 18300 / 18211.50 / 18183 / 17890 / 17502.45.

RESISTANCE: - 18923.60 / 19166 / 19445 / 19779 / 19844 / 19991.40 / 20610 / 20907.55 / 21097 / 21360.

(Figures in bold are important)

Index opened on a flat note at 19066.25 and made a high of 19119.70 and thereafter went down steadily and made a low of 18740.35 before closing the week near the low at 18786.70.It is showing tremendous weakness on the technical chart as it is below all its short term moving averages and one long term parameter too, furthermore it has broken its first critical support level of 18923.60 and is just slightly above its 2^nd critical  support level of 18728.20,please note that if it breaks this mark and stays then it may go in for much deeper correction and that may drag it down to 18300 level, chances of which are looking reasonably good at this point of time ,therefore long call is completely ruled out now and below 18728 for sure till it bounces back above 18740 and stays or try it above 18923.60 ,I would advise to try long call only if it maintains above 18923.60. In fact short call can be tried below 18728 with a stop loss of above 18800 for a target of 18500 & 18428.

Going up it will resistance at 18923.60 / 19166 & 19445 and moving down it will have support at 18728.20 / 18428 & 18300.

Kindly note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

REMARK:- Long term up trend is still intact. Since it is correcting now therefore it suggested to avoid long call till it gives visible indication of correction completion.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.