CNX-BANK NIFTY--A TECHNICAL VIEW--6-11-2015

CNX--BANK NIFTY

Closed at 16995.10 on 5-11-15.(Open-17166.45/High-17166.45/Low-16957.35)

Support:-16670/16648/16192/15762.20.

Resistance:- 17111.65/17174/17246/17401.20/17434.05/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20/18411/18586/18728.20/18836.65/18832/18896.45/18922.60.

The on-going up-move has ended today for sure as it had established lower top and bottom on the line chart and broken the recent bottom of 17170.35 on the bar chart(see my post for 5-11-2015). So now the down move is expected to continue, therefore long call should be completely avoided for the entire month of November-2015 till it closes above 17111.65 and sustain. Furthermore it is showing huge weakness on the chart and some of the important technical parameters indicate that it could break the level of 16600 very soon and then may go down further and may test the bottom of 15762.20 it made on 7-9-2015. So be watchful and avoid long trade for now. Going down it will find support at 16670/16648/16192/15762.20. Since the trend is down therefore it is once again suggested to avoid long call now instead try short call near 17111 but not above this mark with a stop loss of above 17180 or below 16957 with a stop loss of above 17060  on 6-11-2015.

Remark:-The long term trend is down and the short term trend has also turned down therefore long trade is completely ruled out for me as of now. It would be better to look for opportunity to sell on the rise at proper points now or try short trade as suggested above. Looking at price behavior for last few days’ short trade seems safe option. 

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.