CNX-BANK NIFTY--A TECHNICAL UPDATE--31-12-2015

CNX--BANK NIFTY

Closed at 16917.90 on 30-12-15.(Open-16997.50/High-17011.30/Low-16889.05)

Support:-16787/16741//16704/16670.55/16648.30/ 16587.25/16497/16192.25/16188.05/15762.20/15301.65/15130.35.

Resistance:- 16946.10/17174.70/17246.55/17302.55/17499/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20.

 As perceived it gave downward moved today and closed below the previous day’s low, it was almost a  reversal on the bar chart , furthermore it also broke its short term rising trend line  drawn from its recent bottom of 16188.05 which indicate gross weakness. Looking at today’s overall move it seems that the on-going up rally may be over. But before concluding that this rally is over please note that it is making higher tops & bottoms on the line chart and it has not violated its recent bottom which is at 16811,it is also running above its all short term moving averages which are in the range of 16869—16746(it changes every day) for 31-12-2015. It has given ample signal for end of this rally by making reversal bar and breaking rising trend line but the confirmation will come if it closes below 16811 and then starts trading below the lower band of its short term moving averages. For 31-12-2015 in view of the above observation it is suggested to avoid long call but those who wish to can initiate if it move and sustain above 16950 or above 17000 with a stop loss of below 16880 and 16940 respectively.

Although it has not given clear cut sell signal now but in view of the reversal bar it made and broken trend line, the aggressive trader can try short call if it trades below 16889 with a stop loss of above 16950, fearless short trade should only be attempted below 16740.     

Remark:-The long term trend is down. Since it has made reversal bar and broken rising trend line therefore it is suggested to avoid long call.

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.