Open—11011--High—11015.30—Low—10790.20---Close-10805.55
on 24.9.2020.
Support:10783/10676/10551/10328.50/10194.50/9970.80/9944.40.
Resistance: 10882.25/10894.05/10985.58/11056.55/11111.45/11185.15/.
Critical Points moving down: 10783.43---10670---10544---10300---9970.
Critical Points moving up: -10931—10985.58--11050---11107---11209.
(Bold and underlined figures are most important)
Further to my last post for 14th Sept-2020, it did surge ahead in next two days and hit a high of 11618.10 but could not hold on at the higher levels on the closing basis and as envisaged broke the benchmark point of 11447 and resumed the down move again and hit a low of 10790.20 today. It has been relentlessly falling for the last six days and today it has come to a point where it has bed of supports in the range of 10783---10670 and most importantly it took support just above 10783 which is the benchmark point for now and sustained break below this mark on the closing basis can push it into deep correction mode which may please be noted. In view of the good support range and six days fall it can stage a short pullback rally from here in a day or two if it holds 10783 level before resuming the down move again and in this up move it could move up to 10931----10985.58---11090 levels, sustained close above 11090 may provide some strength to the pullback rally and then the rally may extend, but the technical setup looks extremely weak as of now therefore it is not likely to move beyond 11050. Looking at the overall chart setup it seems that the possible pullback rally would be weak one and can fizzle out any moment. Moving down it will find support at 10615---10551---10500---10370---10300—10150. Please note that sustained break below 10551 on the closing basis will accelerate the fall further and sustained break below 10150 on the closing basis will signal the end of the uptrend.
It is in the corrective mode now therefore long trade should be avoided in general till it gives visible sign of bottom formation, but since it is near its good support range of 10783—10670 therefore aggressive traders can try long trade in this range for taking advantage of a possible pullback rally but if it gives an indication of closing down below the benchmark point of 10783 then please exit the long trade in any case. Please note that the pullback rallies are treacherous in nature and often ends abruptly trapping the traders on the wrong foot, therefore be careful in long trade. It is suggested to adopt sell on the rise strategy or sell on the price breakdown till clarity on bottom formation emerges.
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. Buy near or within the range of 10783---10670 with a stop
loss of 10640.It could be a risky trade. Exit long trade in any case if it
closes below 10783.
2. Sell on the rise near or within the range of 10990---11090 with a
stop loss of 11120. It could be a risky trade but worth trying.
Or
Sell if it falls below 10670 and maintain below it for some time
with a stop loss of 10800.
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.
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Thank you for sharing your views.