Open-26274.10--High-26853.45--Low-26135.30—Close-26798.95
on 6.11.2020
Support:26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24365/24240/24096.75/23912.75/23867.75/23822/23612.70/23605.40/23388/23211.35/23081/22866/22479.85/22439.95/22418.
Resistance26950/27164/27589/27754.45/28525.45/29156.25/29435.05/29612.55/30121.75.
(Bold and underlined figures are most
important)
It has been continuously rising and showing robust strength,
furthermore it has given breakout from the major down trend line drawn from its
all time high of 32613.10,which is
an extremely positive and bullish sign and if it sustain this breakout then it
is heading for a big rise in coming days, but the only concern is that it has
not filled the gap it created on 5.11.2020
and if it makes an attempt to fill the gap in next 2-3 days time which is technically possible then it could come down
to 25891 which may be kept in mind.
However if it does not fill the gap in next 2-3 days then this concern may be over for the time being.
Furthermore it has had a vertical rise in the last five days from the level of 24120, so correction is imminent and
can happen any time soon. Please note that now its key points are at 26088.60 & 25331.60(figures can change
with upward price movement) as long as it holds these key points on the
closing basis the ongoing up move will continue off course with intermittent
down correction, but sustained break below
26088.60 on the closing basis can
push it into short term correction mode and sustained break below 25331.60 can push it into slightly
deeper correction. Moving down it may find support at-26665---26492---26311---26088.60---25615---25331---25233---24850---24365---24319.50.
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 bounce back above its key points after
correction is over. Moving up it will face resistance at: - 26950---27164---27589---27755---28216---28525. The bias is up as of now. I once again repeat that it is very strong on the technical footing as
of now but at the same time it is highly vulnerable for correction also, so be
watchful and alert in long trade.
In view of the above observation long trade can be tried, if it moves
and maintains above 26855 for some
time or on the decline at appropriate points or near 26088.60 but not below it. Please
note that long position can be tried above 26088.60
in any case for the day. Since it is in strong 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
or may be long correction at times.
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 or near
26088 but not below it with a stop loss of 25950.
Or
Buy if it maintains above 26855 for some time with a stop loss
of 26750.
2. Sell on the rise near or within the range of 27400--27500
with a stop loss of 26600. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it does not move above 26855 in first hour
of trade with a stop loss of 26925.It could be a highly risky trade but worth trying.
Or
Sell if it moves and maintains below 25950 for
some time with a stop loss of 26100. 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 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.