CNX-NIFTY
Closed at 7912.05 on 21-4-2016 (Open-7953.65/High-7978.45/Low-7884.10)
Support: - 7873/7772/7723.85/7714/7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.
Resistance: - 7938.45/7946.35/7961.35/7972.55/7979.30/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.
At
last after 6 days of rise it had a very short down day today and closed with a
meager loss of 2.70 points. It corrected on the closing basis but not in a desired
way after a straight rise of more than 450 points, so it may correct further
from here before it resumes the up move again. Furthermore it crossed its most
crucial points of 7938.45 & 7946.35 for the year 2016 for the 2nd day today
and almost hit the upper band of the resistance range of 7923—7980(see my post
for 21-4-2016) but slipped down from there and corrected by more than 90 points
and finally gave a negative close. Although it is technically looking extremely
good on the chart, but since it has not closed above its critical points of
7938.45 & 7946.35 and failed to cross the 7980 point is a concerning thing.
Please note that if it fails to cross and close above the aforesaid points soon
this on-going up move may end here. Furthermore last three days close in an
extremely short range indicate that a big move is ahead on the either side so be
careful and watch it out. In view of the above observation, it is suggested to
try fresh long call once it closes above 7946.35 but it would be safe to try
long call if it moves and sustain above 7980 because if it does then it may go
beyond 8200+ level also.
It is important to mention here that
tomorrow will be the 34th day of entire up move from the bottom of
6825.80 made on 29.2.2016 and it is a Fibonacci number and furthermore today it
hit its multiple top range of 7980 and slipped down sharply, so this up move
may possibly can top out here, if it does not move above 7980 soon. Going down
from here it will find support from its down trend line at 7845(it changes
every day) and then from its long term moving average which are in the range of
7818—7629(it changes every day). Please note that break below the down trend
line can accelerate the fall. In view of the above I once again reiterate that
long call should only be tried if it moves and sustain above 7980.
For 22-4-2016 avoid long call now, short
call can be tried near 7980 but not above it with a stop loss of above 8020 or
if it moves and sustain below 7908 with a stop loss of above 7950 for a target
of 7884/7877/7845/7818. Please watch the market for some time before initiating
any trade.
Remark: - In view of the above observation avoid long call for sure
instead try short call as suggested above but with caution.
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.
No comments:
Post a Comment
Thank you for sharing your views.