CNX-BANK NIFTY-A TECHNICAL VIEW--8-10-2015

CNX--BANK NIFTY

Closed at 17616.80 on 7-10-15.

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

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

It opened on a negative note at 17577.50 and made a low of 17500.35 and a high of 17674.55 before closing the day flat at 17616.80. It is not showing the required strength for sustained up move at all. It did not make an attempt today to give up side breakout from the Inverse Head & Shoulder pattern neckline after yesterday’s failed attempt, the neck line is at 17740 ,furthermore it again broke its down side critical point which was at 17539(it changes every day)but managed to close above it, now it is just resting on its short term rising trend line which would be at 17600 for 8-10-2015. So overall it is exhibiting weakness and is critically poised, in fact on the edge now and if it fails to give up side breakout in next 1-2 days then this pattern could fail. Please note that for 8-10-2015 break below the trend line mark of 17600 will signal the first crack on this on going up move and consistent trading below 17539 level will indicate potential weakness and finally below 17100 it will give confirmation that the up move may be over. Therefore long call should only be tried if it moves 17740 and sustain on 8-10-2015.

TRADING STRATEGY FOR-8-10-15

1. It would be safe to initiate long trade if it sustain above 17740 with a stop loss of below 17600.

2. Short call can only be tried if it consistently trades below 17539 for some time with a stop loss of above 17660.

Remark:-The long term trend is still down but short and intermediate trend is slightly looking up. But since it had failed to give an up -side breakout from the neckline it is suggested to initiate fresh long trade only if it moves above 17740 and sustain. Short cal can be tried as suggested above. 

  

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.