CNX-NIFTY
Open-9958.65—High-9963.60---Low—9913.30---Close—9934.80
on 8-9-2017
Major Support: -9882.55/9870/9850/9838/9792.05/9783.75/9740.10/9709.30/9700/9688/9685.55/9621.40/9532.60.
Major Resistance: -9947.80/9964.85/9888.40/10031/10048/10088.10/10114.85/10131/10137.85.
Critical Point:-9870 & 9970.
For-11-9-17 the intra-day short support
and resistance levels are given here-under:-
Support: -9925—9900/9882—9850/9838/9803.
Resistance: - 9941/9947.80/9964.85/9988.40/10031/10048/10067—78/10088.10.
Further to my last post of 4-9-2017 it
moved in a range, it did cross the recent high of 9983.45 for a while and made
a little higher high at 9988.40 but could not sustain for a minute even and slipped,
similarly it did not break the first threat point of 9850. So it moved in an
expected range of 9983.45---9850 during the week ended on 8-9-17(see my post of
4.9.17).
It is still making higher bottoms and the
last bottom is at 9882.55 but not making higher top consistently which is
concerning. The trading range for the week starting from 11-9-2017 would be 10031---
9988.40----9882.55---9850. It is therefore suggested to try long call only if
it moves above 9988.40 and sustain for some time with a stop loss of below 9930, avoid buy on
decline strategy for now, however aggressive trader if they wish to can try
long call near 9882 with a stop loss of below 9850 but it could be a risky bet
mind you. Please note that the threat points for the end of this rally would be
break and sustained close below the recent bottom of 9882.55 and its
important point of 9850. But even if it breaks 9850 level it has strong support
in the range of 9740---9709---9685,so the real breakdown can only happen if it
breaks and sustain below 9685,but one should be careful in long trade below its
recent bottom of 9882.55 and critical point of 9870(see my post of 4-9-2017).
It
is very important to mention here that after making an all time high of
10137.85 it fell by more than 450 points in just 8 days and made a bottom at
9685.55, it seemed to be an impulse down move. Thereafter it started moving up
and 18 days have already past but it is way below its all time high of 10137.85
had it been an impulse up move it would have crossed the all time high either
in half the time or in equal time which it took to fall i.e. in 4 or 8 days.
Therefore it is just a corrective up rally and may fizzle out any moment and then
may starts to move down sharply or it can be said that by moving in a short
range now it may be creating a classic bull trap and long trader may be caught
unaware once the on-going up move end abruptly. But if in case it moves
otherwise then it has to move above 10048 and sustain on the closing basis,
then it may regain the up momentum and could make an attempt to cross its previous
all time high of 10137.85 but chances of happening this looks slim at this
point of time(see my post of 4-9-2017).
Furthermore on the weekly chart there is the
strong negative divergence in RSI and MACD is also in the sell mode, therefore as of now it indicates that it may drift on the
downside and may hit 9525/9448 or lower levels in coming days/ weeks,
therefore long trade should be handled with extreme caution and care because
this on-going up move is likely to end abruptly also and may trap the long
trader unaware.
Remark: - It has topped out at 10137.85 for sure
as of now. In view of the above observation long can only be attempted if it
sustains above 9988.40 but even then in view of the negative divergence in RSI
and MACD in sell mode on the weekly chart, one should be extremely vigilant and
cautious in the long trade. I would
personally prefer to avoid long call till it moves above 10048 and sustain or
may try after a reasonable decline, instead I will look for an opportunity to
go short 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.
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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