CNX-BANK NIFTY--A TECHNICAL VIEW--6-10-15.

CNX--BANK NIFTY

Closed at 17674.05 on 5-10-15.

Support:-17502.45/17246/17174/17070/16759/16670/16648/16192.

Resistance:- 17719/17729/17739/17821.90/17842.10/18035/18174.20.

It opened on an extremely firm note at 17373.55 and made a low of 17362.70 and thereafter steadily moved up and made a high of 17699.75 before closing the day near the high at 17674.05. It had crossed all the hurdle in the range of 17215—17550(see my post for 5-10-2015) decisively today which shows   strength, but it is yet to give the up- side breakout from the neckline of the Inverse Head & Shoulder pattern (see my post for 28-9-15) which would be at 17740 for 6-10-15 it is very close to it now and if it does give a breakout and sustain then it can give good up move. Therefore fresh long trade should only be initiated above 17740 on 6-10-15. Please note that after giving up side breakout if it falls below the neckline and sustain then it will be the first sign of weakness and it will indicate potential weakness below 17540(it changes every day) and 17100 which may be kept in mind. The range for tomorrow is between 17740---17540 breakout on either side from this range will decide the price direction. Chances of up- side breakout is likely. Therefore short trade is ruled out for tomorrow.

TRADING STRATEGY FOR-6-10-15

1.Long call should only be initiated above 17740 with a stop loss of below 17640  or near 17540 but not below this with a stop loss of below 17450.

2. Short call can only be tried if it sustains below 17540 with a stop loss of above 17660.

Remark:-The long term trend is still down but short and intermediate trend is looking up. Since it is yet to give up -side breakout from the neckline it is suggested to initiate fresh long trade above 17740. Short trade should be avoided for now and can only be tried if it sustain below 17540.  

  

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.