A TECHNICAL VIEW ON CNX--BANK NIFTY--14-12-2017

CNX--BANK NIFTY

Open-25118.20--High-25270.75--Low-24938.55—Close-25000.35 on

 13-12-2017.

(Bold and underlined figures are important)

MajorSupport:- 24938/24878.65/24813.60/24798.65/24560/.

MajorResistance:- 25119.50/25166/25206/25299/25333/25448.85/25611.55/25685/25695.75/25726/25924.90/25953.50.

For-14-12-17 the intra-day short support and resistance levels are given here-under:-

Support:-24938/24910/24878.65/24813.60/24798.65/24768/24560/.

Resistance: 25119.50/25140/25166/25206/25219/25299/25333/25448.85/25611.55/25685/25695.75/25726/25924.90/25953.50.

Further to my last post on 11-12-17 it did move up that day but could not cross the short term moving averages and in next two days moved down sharply. It is well below its short term moving averages now but near its medium term averages which are placed at 24938/24910 & 24768(it changes every day), it may find support at the above points and may bounce back from here for a while before resuming the down move again. But sustained break below 24910 may drag it down further from here itself. The smooth up move from here does not seem easy because moving up it will face host of resistance first from its short term moving averages which are placed in the range of 25140—219---315---450(it changes every day) for the day, then from its multiple top in the range of 25694—695.75---25924—953.50 and finally from some of its long term indicators which are placed in the range of 25848—26111(it changes every day) for the day.  The technical setup has weakened and bias is on the downside so further down move cannot be ruled out. Therefore it is suggested to avoid long trade till it gives sign of correction completion or if initiated should be handled with extreme caution.

 In view of the above observation, safe trader should avoid long trade now and should try once it moves above 25450 and sustain. However aggressive trader can try long trade in or around the range of 24938—24910 but not below 24910 with a stop loss of below24870, it could be a risky trade mind you. In light of last two days sharp down move short trade can also be tried if it moves below 24910 and sustain with a short stop loss of above 24950 or sell on the rise and the possible sell point could be 25170—219 and then 25285 with a stop loss of above 25330.  

Remark: - The trend is still up but it is in correction mode and at this juncture looks evenly poised with slight downward bias, therefore both side trades can be attempted depending upon the price movement and as suggested above.

  

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.

Note: Price stated here is of spot market.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.