CNX--BANK NIFTY
Closed at 17686.10 on 15-10-15.
Support:-17652.35/17502.45/17401.20/17246/17174/17070/16759/16670.
Resistance:-17719/17729/17739/17821.90/17842.10/18035/18174.20.
It has been oscillating in the range
of 17760—17400 for last six days ,neither giving up-side breakout from the
neckline of 17765 nor breaking down and close below its critical support point
of 17536.88(it changes every day) and recent bottom of 17434.05 & 17401.20
on the bar chart. Please note that today it has given one positive sign by
making higher bottom and higher top on the line chart by crossing the recent
major top of 17674.05. Looking at today’s move the up-side breakout from the
neckline looks like a possibility now and may happen in 2-3 days time. However
please note that it will give first sign of crack if it breaks and close below
its most critical support point of 17536.88(it changes every day) and sustain
then close below the bottom of 17401.20 on the bar chart and sustain and
finally break and close below 17170 will confirm the end of this rally similarly
a sustained up- side breakout from the neckline point of 17765 will show strength and a good up move,
therefore long trade should only be initiated
if it sustain the said breakout for some time.
TRADING STRATEGY FOR-16-10-15
1.It would be safe to try long call only if it sustain above 17765 for at least one hour with a stop loss of
below 17640.
2. Aggressive day trader can try long
call above 17536.88 with a stop loss of below 17450. It could be a risky trade
3. Short call can be tried if it maintains below 17400 with a stop
loss of above 17540.
Remark:-The long term trend
is still down but short and
intermediate trend is looking up .Today’s move was encouraging as it has
established higher top and bottom on the line chart thereby giving some hope of
an upside breakout from the neckline. Therefore long call should only be tried
if it sustain the breakout for some time.
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.
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Thank you for sharing your views.