Saturday, 2 September 2017

A TECHNICAL VIEW ON CNX---NIFTY---4-9-2017


 CNX-NIFTY---4-9-2017

Open-9937.65—High-9983.45---Low—9909.85---Close—9974.40 on 1-9-2017

Major Support: -9970--65/9947.80/9925.75/9911/9870/9850/9838/9792.05/9740.10/9709.30/9700/9688/9685.55/9621.40/9532.60.                                                                                                                    
Major Resistance: -9883.45/10031/10048/10088.10/10114.85/10131/10137.85.

Critical Point:-9870 & 9970.

For-4-9-17 the intra-day short support and resistance levels are given here-under:-

Support: -9970/9947.80/9909.85/9885.

Resistance: - 9983.45/10031/10048/10067—78/10088.10.


Further to my last post of 28-8-2017 it behaved in an expected manner and made further higher bottom and eventually crossed the top of 9947.80, therefore now it is making higher top & bottom and till it breaks its last bottom of 9783.75 this up rally may continue, even if it breaks the said bottom it has bed of 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 critical point of 9970--65 & 9870. The threat points for end of this rally would be break below 9850 and sustained close below the recent bottom of 9783.75. Similarly moving up it will face resistance at 10031/10048 and it could only regain the up momentum and may make an attempt to cross its previous all time high of 10137.85 if it moves above 10048 and sustains on the closing basis else this rally may end at or  around any of the above mentioned points.

The trading range for 4-9-2017 would be 10048—10031---9984---9937.65---9912---9900. Since it is making higher top & bottom long call can be tried now or on decline for sure near support points in the said range but not below 9900 for the day. It closed near the high of the week, so instead of taking long call now it would be better and relatively safe to try long call if it moves above the weekly high of 9983.45 and sustain with a short stop loss of below 9937 but the authentic stop loss for all long trade would be below 9900 for the day.   

It is important to mention here that although it is making higher top and bottom on the daily chart and above its all short and long term moving averages. But not to forget that on the weekly chart the strong negative divergence in RSI is still intact and MACD is also in the sell mode, as of now it indicates that it may drift on the downside in coming days/ weeks,  therefore long trade should be handled with extreme caution and care because this on-going up move can end abruptly also and may trap the long trader unaware.   

Remark: - It still seems that it has topped out at 10137.85 on 2.8.2017 but since it is making higher top &bottom therefore the on-going up move may be extended a little further ,so long call can be tried as suggested above. But 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. 

 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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Thank you for sharing your views.