CNX-NIFTY
Open-8973.05--High-9128.3—Low-8904.55—Close-9111.50
on 9.4.2020
Support:9038.90/8968.70/8842.28/8801.14/8672.07/8553/8537/8470/8336/8269/8148.50/7946.74/7893.80/7816/
Resistance:9119.20/9131.70/9269.20/9341/9390/9448.75/9520-80/9685.55/9687.55/9944.40.
(Bold and
underlined figures are most important)
Further to my last post of 7.4.2020, it unexpectedly gave a robust
pullback rally in the preceding week and hit a high of 9131.70 and ended the
week near the high at 9111.50. It is very significant to note that it has made
higher top and higher bottom on the line and bar chart during the week,
furthermore it has decisively bounced back again above its short term moving
averages on the daily chart and most importantly above its major rising trend
line on the monthly chart after 15 trading sessions, which is at 9070 for the
month of April-2020, therefore as long as it holds 9070 on the closing basis
the ongoing rally may extend and the possible rally exhaustion or sell point
could be at 9269(S/L,9300)/9390(S/L,9420)/9520/9580(S/L,9620) or else a
close below 8748 may signal the end
of this rally and sustained close below 8540(this figure may change after each
trading day) may give a breakdown indication as of now.
Although it is well above its short term moving averages on the
daily chart but still below it on the weekly (with negative crossover) and
monthly chart. It is well below its medium and long term moving averages on the
daily & weekly Charts also. The technical indicators on the weekly &
monthly chart are still showing huge negative divergence, so it may seek lower
levels in time to come once this ongoing rally gets over. However in you view
of the foregoing paragraph the ongoing rally extension cannot be ruled out,
therefore those who wish to ride this rally can try long trade above 9070 with
a stop loss of below 8950, or above 9132 with a stop loss of below 9070 for a
target of 9269/9390/9520, but taking long trade above 9132 would be relatively
safe. As you are well aware that the pullback rallies are treacherous in nature
and may end abruptly so be vigilant and careful in the long trade. Short trade
can be initiated near the possible sell point mentioned above; it seems that 9390
level could be a sensitive sell point or if it starts trading below but near 9070
for reasonable time period say 45 minutes in intra-day then sell with a stop
loss of above 9135 for a target of 8950/8900/8842/8801. PLEASE TRAIL YOUR STOP LOSSES IN PROFITABLE TRADE.
IMPORTANT NOTE: - Be
alert in short trade if it trades above 9070 & 9132 and be alert in long
trade if it trades below 9070.
Remark: - It is in the bear market and the ongoing
rally is a strong pullback rally and it may last for few days, so be alert in
short trade for the time being but one should definitely take a short call at
appropriate points as mentioned and suggested above. Since the up rally is on,
so long call can be tried as suggested above with utmost care and caution.
Please note that it is showing strength in comparison with CNX-Bank Nifty chart.
The bias is bearish.
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 favourable 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 are of spot market.
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