AN OVERALL TECHNICAL UPDATE ON JSPL-31-12-2015

                                                                                             

J S P L

CLOSED AT: - Rs.96.25 on 31-12-2015

Support:-96.25/89.05/86.35/83.60/82.15/69.

Resistance:-96.45/106.04/110/120.75/125.15/127.70/138.05/140.

It made its all time high of 796.10 on 27-8-2010 and since then it has been falling for last five years and during the fall it broke major   bottom of 86.35 & 66.76 it made in the year 2008 & 2007 respectively, it made a new bottom at 56 on 29.9.2015 and since then it has been steadily moving up.

Technically it is still very weak on the weekly and monthly charts now but daily chart has shown marked improvement and good strength therefore it seems that gradually long term technical setup may also improve. 

Please note that it has very good support in the range of 82—96.25 so buy on dip can be tried but not below 86.35 with a stop loss of below 82 but it is suggested to create long position always above 96.25 in the year 2016 with a stop loss of below 86.35(bottom of 2008) because 96.25 is the benchmark point for the year 2016 and if it consistently starts trading below this mark then it could trigger down move again.

The range for the month of January-2016 is 83—98.15 so break on either side will decide which way it will move .As of now it is likely to give upside break, so fresh long call can be added if it moves  and sustain above 98.15 with a stop loss of below 94 for added long position. Moving up it will face stiff resistance in the range of 105—110--117—129—145. The short term bias is on the upside as long as it holds 96.25.

Remark:-The long term trend is still down. But it is exhibiting good strength on the daily chart, so long call can be tried as suggested above .It is important to always keep in mind the benchmark point of 96.25 because trading below this mark for some time could open the down move again.

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.