Open—13012.05--High—13035.30—Low—12914.30---Close-12968.95
on 27.11.2020.
Support:12963/12938.25/12858/12769.75/12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761.
Resistance:13032/13055.15/13075/13145.85/13294/13419/13611/13640/1377914334/15043.
(Bold and underlined
figures are most important)
After opening firm it almost moved in a short range during the day and
finally closed with a meager loss of 18.05
points. It is still above its most critical points also which are placed at 12880 & 12780 for 1.12.2020(figures can change every day) which is a positive sign. Its other key points are at 13047.75---12765.80---12590---12430.5---11816(except
for 12430.50 other figures can change), but it is below its first key point of 13047.75
therefore it is still in very short correction mode till it bounces back above
it and sustain on the closing basis, please note that sustained break below 12765.80 on the closing basis will push
it into short term correction mode, sustained break below 12590 will push it into medium term correction mode, sustained break below 12430.50 will indicate that it could
lose steam for continuation of the up move and most importantly sustained break
below 11816 on the closing basis can
push it into long term correction mode and will potentially threaten the
uptrend also, which may please be noted. The overall technical setup is still
looking good for the up move but certain technical indicators are showing
distinct negative divergence which is haunting and if it comes into play then
it could witness sharp fall and then correction may last for some time. Please
note that divergence will come into play only once its short term averages are
broken and at present it is still above it all but came closer to few averages,
therefore it may take some time for divergence to happen in reality or it may
fade out also with positive divergence in coming days. The divergence is so
strong therefore it is likely to happen and in that case it can come down to 12690 or below as of now, so watch out.
Therefore in light of this it is advised that one should be very alert and
cautious in the long trade henceforth.
Moving down its critical support points at 12963---12880---12780---12730----12590---12530---12430.50---12340---12245---12150---11968---11915---11857---11816.
Moving up its critical resistance points at 13047.75---13075---13145.85---13294---13419---13611—13640.
In view of the above observation for safe traders long trade should be
avoided on the decline for the day but can be tried if it moves and maintain
above 12987 for some time. But aggressive
traders can try long trade on decline at appropriate points or near 12858 but not below it or if it
maintains above 12987 for some time.
It may pick up momentum if it moves and sustain above 13075 on the closing basis. Since it is still into very short
correction mode and some other technical indicators are also pointing that it
may seek lower levels in coming days, therefore short trade can also be
attempted after a reasonable rise or on the price breakdown for taking
advantage of the corrective move.
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 if it maintain above 12987 for some time with a stop loss
of 12950. It could be a risky trade.
Or
Buy on decline at appropriate points or near 12858 but not below
it with a stop loss of 12830. It is for aggressive traders and could be a risky
trade.
2. Sell near or within the range of 13080--13120
with a stop loss of 13160. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintains below 12850 for
some time with a stop loss of 12890. It could be a highly risky trade but worth
trying for intraday correction.
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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