CNX-NIFTY
Open-10169.80—High-10335.95---Low—10138.60---Close—10234.65
on 11-10-2018
Support:10198/10180--170/10137---10094--10033/9951.90/9792/9740/9687.55/9685.55/9448/9408/9341/9119.20.
Resistance: 10276.30/10283.23/10313.56/10378.65/10417.80/10478.60—482.35/10530.70—10560/10631---637/10784.
(Bold
figures are very important)
Further
to my last post of 8.10.18 as envisaged it made a short bottom of 10198.40 on
8-10-18(near the first short covering range of 10180---170) and as expected gave
pullback but a day after on 10-10-18 which took it to 10482.35, a shade above
the 2nd expected sell point(sell points were 10418/478/530 see my last post). On 11-10-18
it opened with a huge downside gap at 10169.80 breaking the earlier bottom of
10198.40 and made a low of 10138.60 but it filled the gap it created today
during the day which was at 10318.25 and finally closed with a loss of 225.45 points
at 10234.65. You are well aware that the pullback rallies in a down trend
market are treacherous in nature and end abruptly trapping the trader unaware
and this is what happened today,
therefore going against the trend is not a prudent idea, so long trade should
be avoided for now. Looking at the overall technical setup it is very much likely
that it will break 10000 level for sure as of now but since it has bed of
support in the range of 10180---10137---10033 and some technical indicators
also pointing that it may move sideways to up for some time before breaking the
10000 mark, so till then it may move in an under-noted range for some time. In
view of the above one may structure their both side trade with the help of under noted range but be cautious in short trade as well.
1. Long Range:-10730----10560----10530---10482.35----10313--10180—170---10137----10033.
2. Medium
Range:-10560----10482.35----10378.65---10313----10180—170---10137----10033.
3. Short Range: -
10482.35----10378.65---10313----10180—170---10137----10033
Kindly note that if it moves above 10560
and sustain then it may consolidate and
if it moves above its long term moving averages which is in the range of
10975—10730 for 12-10-18(it changes every day) and sustains then it may regain
up momentum. Therefore short trade should be avoided above 10560 and can be
initiated again if it sustains below 10530. I once again repeat that the trader
can initiate both side trade with the help of the above mentioned range, but
since the trend is clearly down therefore long trade for pullback is not suggested,
sell on the rise would be a better trade to do but with caution. The possible bottom formation range will
remain the same as mentioned in my last post of 8-10-18.
Remark: - The trend is down and it seems that it
has already slipped into the bear market if it does not claw back above 10560
and then above its long term moving averages in a shortest possible time and
sustain, therefore long trade should only be attempted if it moves and sustain
above 10560 or after the on-going fall is arrested and it gives visible sign of
bottoming out. As of now sell on the rise strategy should be adopted.
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.