Open-26174.80--High-26375.20--Low-26000.05—Close-26313.10
on 5.11.2020
Support:26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24365/24240/24096.75/23912.75/23867.75/23822/23612.70/23605.40/23388/23211.35/23081/22866/22479.85/22439.95/22418.
Resistance26408/26492/26545.70/26950/27164/27589.
(Bold and underlined figures are most
important)
It opened with a huge up gap today and went further high and closed
near the high of the day, it is exhibiting tremendous strength, but the only
concern is that it has not filled the gap it created today and if it makes an
attempt to fill the gap in next 3-4 days
time which is technically possible then it could come down to 25891 which may be kept in mind.
Furthermore it has had a vertical rise in the last four days from 24120 point so correction is imminent
and can happen any time soon. Please note that now its key points are at 25723.25 & 24966(figures can change
with upward price movement) and as
long as it holds these key points on the closing basis the ongoing up move will
continue, but sustained break below 25723.25
on the closing basis can push it
into short term correction mode and sustained break below 24966 can push it into slightly deeper correction. Moving down it
may find support at-25891---27723.25---25572---25232.60---24966---24823.60---24612.70.
The technical setup
is strong enough as of now, so even if it corrects it is likely to resume the
up move again provided it remains above or bounce back above its key points
after correction is over. Moving up it will face resistance at 26492---26665—26950---27164---27589. It is important to mention here that,
if it sustain above 26311.30 levels on
the closing basis then it is likely to hit the level of 28720 in coming days/weeks.
In view of the above observation long trade can be tried, if it moves
and maintains above 26311 for some
time or on the decline at appropriate points or near 25723 but not below it. Please note that long position can be tried
above 25723 in any case for the day.
Since it is showing good strength for the continuation of the up move,
therefore short trade should be avoided in general but can be attempted after a
reasonable rise or on the price breakdown for taking advantage of possible
intraday correction.
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 near 25723 but not below it with
a stop loss of 25600.
Or
Buy if it maintains above 26311 for some time with a stop loss
of 26200.
2. Sell on the rise near or within the range of 26575--26675
with a stop loss of 26750. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it falls below 25600 and maintain for some
time with a stop loss of 25750.It could be a highly 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 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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Thank you for sharing your views.