CNX-NIFTY
Closed at 7455.55 on 2-2-2016(Open-7566.65/High-77576.30/Low-7428.05)
Support:- 7422/7402.80/7295/7241.50/7118.45/6868.85/6638.55.
Resistance:- 7539.50/ 7551.05/7563.55/7575.65/7589.50/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.
As it broke the downside range of
7539.50 for the day (see my post for 2-2-2016) which is also one of the most
crucial benchmark point valid for the entire year of 2016. It witnessed a
complete breakdown and closed near the low of the day. Furthermore going down
it broke almost all its short term moving averages except for one which is at
7431(it changes every day) for 3-2-16 is
highly concerning but the only positive point was in an otherwise devastated day that its
higher top and bottom on the line chart is still intact and its recent bottom
is at 7424.65. However in view of today’s severe down move it seems that the
on-going pullback rally may be over, therefore long call should not be
attempted till it moves and sustain above 7539.50 mark again.
For 3-2-2016 although it seems that
the pullback rally is over but short call should only be tried below 7422 and
add on position below 7402 for sure with a stop loss of above 7460 or try short
call near 7539.50 with a stop loss of
above 7564.
Remark:-The long term
trend is still down. In wake of today’s breakdown long call should be
completely avoided till it moves and sustain above 7539.50 marks. Instead short
call can be tried below 7422.
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.
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Thank you for sharing your views.