CNX-BANK NIFTY--A TECHNICAL VIEW--23-9-2015

CNX--BANK NIFTY

Closed  at 17031.15 on 22-9-15.

Support:--16930/16707/16670/16484/16192/15762.20.

Resistance:-17174/17246/17502/17569.80/17602/17719/17738/17842/18034.

It opened at 17574.60 above the previous day’s high of 17571.30 and made a high of 17652.35 and a low of 16946.25 before closing the day at 17031.15 below the low of previous day. As anticipated it also filled the gap it created on 18-9-15 in the process and could not sustain above the critical range of 17569--17602 for the week.(see my post for 22-9-15)  It was a classic case of copy book trend reversal today, therefore it seems that the on- going pull back rally  may be over and fresh down move may begin from here.

It has broken its short term rising trend line decisively today but it is still within its short term moving average range which is between 17067—16786(it changes every day) for 23-9-15 and also holding the recent bottom of 16739 on the line chart. Although it was a perfect trend reversal on the bar chart but since it is still holding on to its short term moving averages lower band and bottom on the line chart, therefore next 2 days movement has to be watched to see whether it breaks the average range  and  said bottom 16739 or not  to get the confirmation of trend reversal.

I would therefore suggest to avoid long call tomorrow but those who want to try can try if it sustain above 17070 with a stop loss of below 17015 instead I, would suggest to try short call below 16980 with a stop loss of above 17070 for a target of 16930/16707. Aggressive short position can be created once it breaks 16739 mark.

Remark:-The trend is down and today it gave classic copy book trend reversal, so it seems that the on- going up move may be over but since it is holding its short term moving averages lower band and bottom on the line chart, so aggressive short call should be avoided till moving average lower band and bottom of 16739 is taken out but it is suggested to avoid long call for sure as it has given perfect trend reversal today.

                                                                                    

Please 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.

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.