CNX-NIFTY
Open-10123.70—High-10191.90---Low—10120.10---Close—10167.45
on
13-10-2017
Major Support:10137.85/10080.67/10062.97/9992---9988/9970/9955-28/9870—50/9792---88/9740/9709.30/9700/9688/9687.55/9685.55.
Major
Resistance: 10178.95/10191.90/10210—230---260/ 10340---365/10578.
Critical Point:-9870
& 9970
For-16-10-17 the intra-day short support
and resistance levels are given here-under:-
Support: -10137.85/10120/10080.67/10062.97.
Resistance:10178.95/10191.90/10210---230---260.
Further to my last post on 3-10-2017 after
making double bottom at 9687(previous bottom was at 9685) it was expected to
move sideways or up, it moved up and hit a new all time high of 10191.90 which was not
expected at that point of time. Although it hit a new high but RSI on the
weekly and monthly chart are still showing huge negative divergence and MACD on
the weekly chart is still in sell mode, so the indications does not seems good
indicator-wise for the rise, furthermore the movement of 11-10-17 was also disturbing
because after hitting a high of 10067.25 for the day it plunged down sharply to
hit a low of 9955.80 in no time before closing the day at 9984.80,so it seems
that the undercurrent is not that strong and this up move could deceive the
trader at any point of time. But since
the price pattern is strong, therefore till the price movement shows
weakness the negative divergence may not come into play. So it may move up
further from here and moving up it will face stiff resistance at 10178.95/10191.90/10210---230---260--295/10340—365/10578.
Similarly moving down it will find good support at 10137.85 &10080.67 and
break and sustained close below 10080.67 may signal end of the rally for the
time being or for good and correction may creep in then which may be kept in
back of your mind. Please note that the uptrend can only be threatened if it breaks
and sustains on the closing basis below the range of 9709—9685. As of now the
price pattern suggests long trade only but not to forget that huge resistance
range is ahead, so be extremely cautious in your trade.
In view of the above observation long
trade can be attempted only if it moves above 10191.90 and sustain for some
time with a stop loss of below 10120, please note that 10178.85 & 10137.85
would be the alert point. Although price movement does not suggest a short
trade now but since it has strong resistance range ahead in the region of 10210---230---260—295, so contrarian trader
can try short call in the range of 10245—260 with a stop loss of above 10295.
It could be a risky trade but worth trying. Please note that if market opens
with an up gap then watch the market for sometime and let it settle down before
initiating trade.
Remark:
- It is in up momentum
now and may rise further from here but long call should only be tried if it
moves and sustain above 10191.90. But this up move could be deceptive so be
alert in 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.
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Thank you for sharing your views.