CNX-NIFTY
Open-7965.10—High-7970.05---Low—7893.80—Close—7908.25
on
26-12-2016
Support:- 7897/7859/7807/7735-7714/7644.
Resistance:- 7916.40/7927.7938/7946/7988/7992/8002.25/8021/8056.86/8077.50/8108.50/8132.50/8224.50/8230.65/8244/8257.42/8261.75/8274.95.
It opened with a
negative bias and broke its critical range of 7916.40—7897.25(see my post for
26-12-16) in no time and hit a low of 7893.80 but recovered immediately and
started trading above 7916.40 but not very comfortably and gave whip saw around
it throughout the day and finally closed within the aforesaid range at 7908.25,
which indicates gross weakness in it. The technical setup is terribly weak and
the down move is on, therefore it is suggested to avoid long call in general but
it can be tried if it moves and sustain above 7943 , but it would be safe to
try long call only if it moves and sustain above 7992, since it has closed just above the lower band
of its critical point of 7897, therefore if it holds this level for some time
aggressive trader can try long call above 7897 or even near 7965 but not below
this level with a stop loss of below 7855, but it could be a risky trade mind you. The
trend is down therefore short call seems a safer bet and it can be tried if it
breaks and sustain below 7897 with a stop loss of above 7932.
Remark: - The uptrend is severely threatened and
it is already in the downtrend now. It has just closed above its critical point
of 7897, so now both side trades can be tried depending on the price movement.
But please note that sustain break below 7897 may accelerate the fall therefore
long call should be handled with extreme caution. Since the trend is down
therefore short call seems a better option. The overall technical setup is hugely
bearish 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.
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.
Note:
Price stated here is of spot market.
Contact me for
strategic guidance to enter and exit
trade.
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Thank you for sharing your views.