CNX-NIFTY
Open-10210.35—High-10211.95---Low—10123.35---Close—10146.55
on
19-10-2017
Major Support:10137.85/10103.82/10080.67/10062.97/9992---9988/9970/9955-28/9870—50/9792-- -88/9740/9709.30/9700/9688/9687.55/9685.55.
Major
Resistance: 10178.95/10185--220/10251.85/10269—310---350 /10578.
Critical Point:-9870
& 9970
For-23-10-17 the intra-day short support
and resistance levels are given here-under:-
Support: -10137.85/10120/10080.67/10062.97/10043---015/9992--88.
Resistance: 10178.95/ 10185--220/10251.85/10269—310- -350 /10578.
Further to my last post on 16-10-2017 as
envisaged the range of 10245—260 proved to be a good sell range and market
respected it ,after hitting new all time high of 10251.85 it retreated back and
closed the week near the low at 10146.55. Please note that the price pattern
has weaken in last two days, furthermore it has broken its short term rising trend
line also today which is a bad sign, therefore it seems that the correction may
accelerate in coming days/weeks provided it breaks and sustain below 10080.67
on the closing basis. Moving up from here seems slightly difficult because it
has strong resistance in the range of 10178.95---10185---10225---235 and then
10251.85---270---310---350 and piercing it may not be easy therefore chances of
going up is less likely.
I
once again reiterate here that the RSI on the weekly and monthly chart are
still showing huge negative divergence and MACD on the weekly chart is still in
sell mode (see my post of 16-10-17), so the indications does not seems good
indicator-wise for the rise and since the prices are showing weakness and if it
persist for few days then the negative divergence may come into play and it
could see a moderate to sharp fall in coming days/weeks. It is also important
to mention here that its long term moving averages are placed in the range of
9738---9370 now (it changes every day) and it has double bottom at 9687--9685,
so sustained break below 9738 will threaten the long term uptrend, break below
9685 will accelerate the fall and sustained break and close below 9370 may put
the uptrend in real danger which may please be noted.
In view of the above observation long
trade could be dicey at this point of time because moving up it has string of important
resistance in the range of 10178.85—225---235 and then10251.85---270---310---350,
so if anyone wish to try long call then should try only if it moves and sustain
10235 for some time with a stop loss of below 10170. Short call seems a better
bet now on the rise and in the range of 10210---235 but not above 10235 with a
stop loss of above 10275 or sell below 10120 with a stop loss of above 10180.
Remark:
- The last two days down move
showed good weakness and indicate further fall may be ahead therefore it is
suggested to avoid long call now and can only be tried if it moves and sustain
above 10235. Short call seems a relatively safer bet now; therefore it can definitely
be tried as suggested above. I would personally surely avoid long call till it
closes above 10235. The bias is on the downside as of 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.