CNX-NIFTY
Open-9158.30--High-9158.30—Low-8806.75—Close-8823.25
on 18.5.2020
Support:8821/8801.14/8700/8672.07/8617/8542.59/8480/8419/8220/8148.50/8055/7947.74.
(Bold and underlined figures are most important)
It opened on a positive note today at 9158.30 and the open was
high also for the day, then it plunged down sharply and made a low of 8806.75 in
the late afternoon and closed the day near the low at 8823.25 with a loss of
313.60 points.
Today it broke its first & second layer (see my post of 18.5.2020) of support range effortlessly and decisively, which speaks of great weakness in it. The fall was huge but it took support on the last layer range, so it may stage a short up move from here before finally breaking this range. Moving down the support ranges for now is mentioned hereunder.
1. 8821---8801---8672- (3rd layer support, see my post of 18.5.2020) sustained break below 8672 will indicate that it could retest or break its bottom of 7511.10 made on 24.3.2020 in coming days/weeks.
2. 8542.59---8480---8419.
In case it gives move up it will face stiff resistance in the range mentioned hereunder.
1. 8909.40---8981---9062.17—sustained close above 9062.17 may take it little higher.
2. 9146---9190---9227.24---sustained close above 9227.24 will give some strength for the up move.
3.9290----9327.85---9390.31—sustained close above 9390.31 may regain up momentum.
The trend is down and in view of today’s down move it is not likely to move up beyond the range of 9062.17----9150---9328 on the intraday basis in case of pullback rally, therefore any up move should be utilised for selling till it closes above its critical points of 9062.17 ---9227.24 & 9327.85 . So it is strongly advised to avoid long trade completely as of now.
TRADING STARTAGY
1. Sell on the rise in the range of 9000---9070---9150----9260----9330
with a stop loss of above 9420. Kindly note
that the self defined short
stop losses can also be
applied by the traders, but the authentic stop
loss would be 9420 only.
Or
Sell below 8801 with a short
stop loss of above 8860.
Remark: - The long term trend is down. Today’s severe breakdown indicates huge weakness in it, therefore long trade should be completely avoided for now and be reviewed only if it closes above its critical points mentioned above. 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.
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Thank you for sharing your views.