CNX-NIFTY
Open-7915.05—High-8044.65---Low—7903.70—Close—8032.85
on
27-12-2016
Support:-8002/7992/7988/7946/7938/7927/7916.40/
7897/7859/7807/7735-7714/7644.
Resistance:- 8056.86/8077.50/8108.50/8132.50/8224.50/8230.65/8244/8257.42/8261.75/8274.95.
It opened on a
steady note and since it did not break its critical point of 7897.25 it
gradually firmed up and gave sustained and robust rise and closed near the high
of the day. In today’s up move it crossed its recent top of 7985.75 on the line
chart decisively which indicates that a
bottom is in place at 7908.25, therefore it is expected that this up
move may continue for few days provided it holds its bottom of 7908.25 on the
closing basis and finally the level of 7897.25. Therefore to
take advantage of this pullback rally long call can be tried above 8045 or on decline
but not below 7974 with a stop loss of below 7940. Moving up it would face
stiff resistance at 8056.86/8085/8130/8185/8199 and the up move may get exhausted
at any of these points. It is therefore suggested to be vigilant and cautious
in long trade.
Please note that
it is in downtrend and today’s rise was an up move within the down trend and
may continue for another 3-4 days or more before it resumes down journey again, therefore avoid short call now and look out for signal
and price pattern to initiate fresh short trade. However the aforesaid
resistance points could be the potential sell points also, so watch out. Sell
call can surely be tried if it breaks and sustain below 7940 with a stop loss
of above 7992.
Remark: - The uptrend is severely threatened and
it is already in the downtrend now. But in view of the above observation it
seems that the up move may last for few
days therefore long call can be tried as suggested above and short call be
avoided now, but can be tried below 7940
with a stop loss of above 7992. The overall
technical setup is bearish.
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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