Open—11678.45--High—11748.95—Low—11535.45---Close-11642.40
on 30.10.2020.
Support:11633/11618.10/11614/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.
Resistance:11661/11684.85/11733/11761/11775.75/11794.25/11803/11832.30/11929.60/11981.75/12025.45/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.
(Bold and underlined
figures are most important)
As envisaged in my post of 29.10.2020
it corrected sharply in last two days and after hitting a low of 11535.45 today it bounced back in the
late afternoon to close with a meager loss of 28.40 points. Please note that until and unless it closes above 11661 & 11733 points and sustain on
the closing basis, it may not get the steam to move up, so moving up 11733 is the benchmark point and till it closes above it
and sustain down move may continue. Moving
down it may find support at 11618---11553---11447---11407---11341---11270,
it may bounce back from any of these points for a short pullback move, but
please note that sustained break below 11447 on the closing basis will put the
ongoing up move in danger, so going down 11447 will be the benchmark point and
sustained break below 11270 on
the closing basis will further accelerate the fall. Similarly if it moves and
sustain above 11733
on the closing basis then only it can make an effort for the up move to gain
some strength, going up it will face stiff resistance at 11780---11838---11910---11930---11981---12025.45.
The overall chart setup indicate that down move may continue as of now.
In view of the above observation for safe traders it is suggested to
avoid long trade till it closes above 11733.
However aggressive traders can try long trade if it moves and maintain above 11733 for some time intraday or on the decline at the appropriate
points mentioned above with self-defined short stop losses with the help of
support points mentioned above but not below 11447, buy on decline could be a risky trade for now. Since it is in
correction mode it is strongly suggested to adopt sell on the rise strategy at
appropriate range or sell on the price breakdown for taking advantage of short
or may be long correction till clarity on correction completion 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 on decline at appropriate points but not below 11447 with
a stop loss of 11390.It is for aggressive traders. It could be a risky trade.
Or
Buy on decline near but not below 11535 with a
stop loss of 11500.It is for aggressive traders. It could be a risky trade.
Or
Buy if moves and maintains above 11733 for some time with a stop
loss of 11690. It is for aggressive traders. It could be a highly risky trade.
2. Sell on the rise near or within the range of 11760---11805
with a stop loss of 11835 It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it does not move above 11733 for some time with a stop loss
of 11780 it could be risky trade but worth trying.
Or
Sell if it maintains below 11535 for some time
with a stop loss of 11610.
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 favorable 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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