Thursday, 7 May 2020

A TECHNICAL VIEW ON CNX-NIFTY FOR -8.5.2020


CNX-NIFTY

Open-9234.05--High-9277.85—Low-9175.90—Close-9199.05 on 7.5.2020

Support:9180/9141/9116.50/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.


Resistance:9270.90/9299/9327.85/9390.31/9468.75/9685.55/9687.55.

 (Bold and underlined figures are most important)                                                                       
It closed below the previous day’s close today, hence it has made lower top at 9270.90 and also broken recent bottom of 9205.60 after a long time and closed at 9199.05, so made a lower bottom also. It thereby confirms that now the down move should gather momentum. But it is important to mention here that now a close above 9270.90 and then above 9327.85 & 9390.31 could again reverse this process and it may start moving up again. Therefore one should be alert in short trade if it closes above 9270.90&9327.85 and sustain, but one should think of long trade only if it closes above 9390.31 and sustain. So, short trade on the rise and on price breakdown would be the best option as of now.

Moving down it will find good support in the range of 9090---9038 and then 8909—8801---8672, please note that sustained break below 9038 on the closing basis will further accelerate the fall.

TRADING STARTAGY      

1. Sell on the rise in the range of 9270---9327.85---9390.31 but not  
    above 9390.31 with a stop loss of above 9430. Kindly note that the   
    self defined stop losses can be applied by the traders but the authentic
    stop loss would  be 9430 only.

Or
    Sell below 9175 with a stop loss of above 9260. This is a short stop
    loss It could be triggered but one has to maintain short position again
    below 9175  for the day.

Remark: - The long term trend is down. Since it has made lower top & bottom the down move should accelerate now. In view of the above observation long trade is a complete avoid till it closes above 9390.31 and sustain. Only short trade should be attempted as suggested above. The long term 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.

Contact me for strategic guidance to enter and exit trade.



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