CNX-NIFTY
Open-8196.15—High-8228.85---Low—8155.80—Close—8221.80
Support:-8170.80/8155.80/8154.45/8102.05/8056.85/8002.25/7992/7952.55/7946/7935/7927/7916.40/7897/7859/7807/7735-7714.
Resistance:- 8224.50/8230.65/8244/8257.42/8261.75/8274.95/8300/8337.90/8371/8402/8445/8476.70/8489/8506/8518/8540-8555/8598.45.
It did break its
long term moving average at 8157 for 13-12-2016 for a while but could not
sustain below it and it was far away from its bottom on the line and bar chart
(see my post for 13-12-16) hence as expected it staged an up move and closed
near the high of the day. Please note that today’s move has elevated the line
chart bottom at 8170.80 and bar chart bottom at 8154.45 and its last long term
moving average is placed at 8162.69(it changes every day) for 14-12-2016.
Therefore the range of 8170.80---8154.45 is very important and as long as it
holds this range the up move may be in place so long call can be tried till it
hold this range with a stop loss of below 8130 avoid long call below
8170.Please note that break and close below 8154.45 will confirm the end of
this on-going pullback rally. I once again reiterate (see my post of
12&13-12-2016) that pullback rallies are treacherous in nature and can end abruptly;
therefore long trade should be handled with extreme caution. However in case if
it continues moving up from here then the possible exhaustion points of this
rally could be at 8275/8300/8370. Short
call can safely be tried if it sustain below 8154 with a stop of above 8225.
Remark: - The uptrend is threatened and it is in
intermediate downtrend now. The pullback rally is on so as long as it holds the
range of 8170.80—8154.45 long call can be tried as suggested above. The overall
technical setup is bearish as of now.
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.
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Thank you for sharing your views.