CNX-NIFTY
Open-10108.30--High-10176.20—Low-10035.55—Close-10061.55
on 3.6.2020
Support: 10047/10004/ 9970.80/9944.40/9889.05/9700/9685.55/9600/9580/9475/9390.31/9327.85/9299/9220/9158/9141/9131/9116/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555
Resistance:-10137.85/10178.95/10276.20/10333.85/10417.80/10490.95/10551.20/10557.70/10637.15/10670.25/10782.60/10941.20.
(Bold
and underlined figures are most important)
It opened up with a huge up gap at 10108.30 and
went up further and made a high of 10176.20 than in the late afternoon it went
down and made a low of 10035.55 and ended the day near the low at 10061.55. It
closed on a weak note from the daily price pattern point of view, so chances are
that correction may set in.
Although it is still looking good for further up
move on the chart but today’s price setup is slightly concerning, secondly the
up gap it created today and on 1.6.2020 is still there and if it makes an
effort to fill the gap in next 3-4 days, which is technically possible then it
can come down to 9995 & 9598.85 levels, furthermore it has been vertically
moving up and today was the sixth day of rise in a row so if it corrects from
here then it may have vertical fall too and most importantly it did try to sail
through the long term moving averages(see my post for 3.6.2020,Long term moving
averages at 10050—10117---10188---10237---10351---10465---10500) but could not go
beyond the 3rd level and
closed just above the 1st level of 10050. However it may try again today
to cross these averages, so watch out. It may be volatile today and can swing
both ways.
In view of the above observation and looking at
today’s price pattern correction looks imminent and can happen any time soon.
It is therefore suggested to avoid long trade at this juncture and wait for a
reasonable correction to try long trade. So, short trade should be a better strategy
for the day if price pattern permits.
TRADING STRATEGY
1. Avoid long trade today.
2. Sell on the rise near or within the range of
10150----10200 with a stop loss of 10250.
Or
Sell
if it maintain below 10035 with a stop loss of above 10110.
Remark: - The long term trend
is down. Short term trend is up but correction looks imminent, therefore long
trade should be completely avoided for the day. Short trade should definitely
be attempted as suggested above. The short term bias is up, which may not last
long. 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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Thank you for sharing your views.