Open-25038.80--High-25232.60--Low-23385.30—Close-23754.3
on 31.8.2020
Support:23385.30/23211.35/23080.60/22479.85/22439.95/22418/21967.
Resistance:24364.27/24617/25232.60/25430/25725/25820/25955/26311.30.
Critical Points moving
up: 24364.27---24618---24900----25236----25432----25650.
Critical Points moving down:-24364.27---23610---23090----22730---22400.
(Bold and underlined figures are most
important)
It opened with a huge up gap and went further up then plunged
down sharply and went below the low of the previous day but managed to close
above the previous day’s low which is still a very weak sign and in technical
parlance today’s price pattern is called downward reversal although it was not
in copy book fashion but still it is very bad sign. Furthermore it is well
below its critical point of 24364.27.
Therefore in totality today’s move was a massive jolt to the ongoing uptrend
and a potential threat for the end of the trend, so it has to be seen how it
pans out in next 2-3 days and for
the uptrend to continue it has to maintain above its recent critical points of 23610---23090---22732---22400(figures
will change every day) and sustain on the closing basis else down move may
continue. Moving down it may find good support at 22169----22022----21870---21250---21031---20926 sustained break
below 22169 can drag it down further
and sustained break below 20926 may
accelerate the fall. Similarly moving up it will face stiff resistance at 24364.27---24527----24800---24865---25200.
But looking at today’s price movement further down slide seems a distinct
possibility.
In view of the above observation, it is suggested to avoid long
trade completely for the day. In light of today move it is strongly suggested
to attempt short trade after a reasonable rise near or within the appropriate
range or on the price breakdown for taking advantage of corrective move or for
taking advantage of rally breakdown.
I have been apprehending this fall for quite some time
,therefore I have been writing a caution note in the last paragraph of my almost all the articles
published recently and it is still there.
It is imperative to mention
here that the ongoing surge in the Indian as well in the rest of the world
stock market for the last few months is not at all fundamentally backed but
purely liquidity driven which is concerning. In light of this instead of
caution it seems that there is an irrational exuberance in the stock market now
which is even more concerning. Please take my word that at this juncture if
investors and traders do not exercise extreme caution and alertness
particularly in the long trade then they are surely going to be trapped in
coming days. One cannot time the correction but it seems that it is around the
corner.
NOTE: - If it opens up with huge gap up then
wait for it to settle down before initiating long position, but short trade can
be attempted on huge gap up if it is near the selling point and vice versa .
Since, it is showing volatility so any type of trade should be squared off
during the day, if you don’t have reasonable profit margin in the trade. Day
squaring off is strongly suggested in any case.
TRADING STRATEGY
1. Sell on the rise near or within the range of 24365---24550 with a
stop loss of 24650. It could be a risky trade but worth trying.
Or
Sell if it moves below 23385 and maintain for some time with a stop
loss of 23485. It could be a risky trade but worth trying.
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.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
No comments:
Post a Comment
Thank you for sharing your views.