A TECHNICAL VIEW ON CNX--BANK NIFTY- 12.5.2020

CNX--BANK NIFTY

 

Open-19610.45--High-19733.40--Low-18900.90—Close-18950.50 on 11.5.2020

 

Support:18852/18703/18300/18100/17850/17340/17248.42/17143.20/16946/16759/16587/16387/16193/16116.25.

 

Resistance: 19271.75/19200.08/19669/19685/19769/19874/19881/19934/20010/20514.75/20586.22/21122.10/21348.15/21462.40.

 

 (Bold and underlined figures are most important)

 

It is showing extreme weakness as it has made lower top at 19694.55 and it made lower bottom today by breaking its recent bottom of 19271.75 decisively. Furthermore it is well below its short, medium and long term moving averages on daily and weekly chart which potentially indicate that fall is going to accelerate further in days to come. However in between short up rally cannot be ruled out. But long trade should be completely avoided as of now instead short trade should be attempted on the rise or on the price breakdown. Moving down it will find good support at 18850---18300---18100---17850---17343---17143.

Since it is well below it most critical and important point of 20010 for quite some time, therefore it very much likely that it will retest or break its bottom of 16116.25 it made on 24.3.2020 in days to come.

  

TRADING STARTAGY      

 

1. Sell on the rise in the range of 19670---19870---20010---20100 with a stop    loss of above 20200. Kindly note that the self defined stop losses can be applied by the traders but the authentic stop loss would be 20200 only.

 

Or

 Sell below 18940 with a short stop loss of above 19200. This stop loss can be triggered, which may please be noted.

 

Remark: - The long term trend is down. It is in correction mode therefore long trade is a complete avoid as of now. Only short trade should be attempted as suggested above. The long term bias is hugely 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.

 

Contact me for strategic guidance to enter and exit trade.