A TECHNICAL VIEW ON CNX-NIFTY FOR-21.5.2020

CNX-NIFTY

 

Open-8889.15--High-9093.80—Low-8875.35—Close-9066.55 on 20.5.2020

 

Support:9062.17/9038/8940/8909/8821/8801.14/8700/8672.07/8617/8542.59/8480/8419/8220/8148.50/8055/7947.74.

 

 

Resistance:9165/9190/9250/9300/9327.85/9348.12/9390.31/9468.75/9685.55/9687.55.

 

 (Bold and underlined figures are most important)                                                                       

It opened on flat to positive note at 8889.15 and made a low of 8875.35 and then smartly moved up and made a high of 9093.80 and ended the day near the high at 9066.55. After yesterday weak price movement it gave a robust up move today and closed a shade above its critical point of 9062.17(see my post for 20.5.2020).It has to be seen in next 3-4 trading session whether it will sustain above it or not.

 

It has closed above its critical point of 9062.17 so; it has open the upside up to 9220 and sustained close above 9220 will open the upside up to 9350 but for a bigger up move it has to close above 9390.31 and sustain. Kindly note that it is still below its short term moving averages and well below its medium and long term moving averages on the daily and weekly chart, therefore long term trend is down. But in short term if it sustain above 9062.17 on the closing basis then it can move higher and moving up it will face stiff resistance at 9150---9190---9220---9250---9327.85---9348.12---9390.31. Please note that this is a pullback rally so long trade can be tried above 9062.17 for taking advantage of this rally ,but as you are already aware that the pullback rallies are treacherous in nature may end abruptly also at any of the above mentioned points, so one should be extremely vigilant and cautious in long trade. Since this pullback rally is within the downtrend therefore short trade can also be attempted at the important points at 9180----9220----9327.85----9348.12---9390.81with extreme caution.

 

TRADING STARTAGY      

 

1. Buy above 9062.17 with a short stop loss of below 9020, but the authentic stop loss would be 8950.

Or

    Buy above 9094 with a stop loss of below 9020.

   

  

2. Can try selling at critical range 9180----9220(S/L- 9250), 9327.85—9390.31 (S/L—9475).

Or

  Sell below 9020 with a stop loss of above 9095.

Or

Sell below 8950 with a short stop loss of above 9045.

Remark: - The long term trend is down. It closed above its critical point today and if it sustain above 9062.17 it then it can move up further, therefore long trade can be tried as suggested above with extreme caution. Short trade can also be attempted as suggested above with extreme caution too.    

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.