Open—12680.60--High—12769.75—Low—12571.10---Close-12749.15
on 11.11.2020.
Support:12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.
Resistance: 12770/12818/13419/13611/13640/1377914334/15043.
(Bold and underlined
figures are most important)
It has been exhibiting
tremendous strength and continuously moving up and this up move may continue
with in between down correction and it may scale highs in coming days, provided
it respect its key points mentioned below and most importantly move above its
tough range of 12770---12818 and
sustain on the closing basis.
The chances of filling the gap it created on 5.11.2020 has receded now, therefore it may not come down to the
level of 11929, but chances of
filling the gap it created on 9.11.2020
is still there in next 1-2 trading
session and in that case it can come down to 12280 levels but if did not fill the gap in next 1-2 days then concern for filling this
gap may be over for the time being.
Furthermore it has had a vertical &
straight rise in the last eight days from 11557 points to 12769.75 intraday, so
correction looks very imminent and can happen any time soon. Kindly note that it’s most important benchmark point
is its previous major top of 12430.50
and sustained break below this mark will reduce the chances of resuming the up
move again for the time being. Apart from this it has other important key
points at 12478.40---12430.50---12302.60---11528.70,(
except for 12430.50 other figures can
change)sustained break below 12478.40
on the closing basis will push it into short term correction mode,
sustained break below 12430.50 will
indicate that it could lose steam for the up move, sustained break below 12302.60 will push it into medium term
correction and most importantly sustained break below 11528.70 can push it into long term correction mode and will
potentially threaten the uptrend, which may please be noted. As long as it
holds these key points on the closing basis the ongoing up move will continue
off course with intermittent down correction. Moving down it may find support
at 12478.45---12430.50---12302---12280---12152---12025---11826---11782---11528.70---11257---11186. 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 and most importantly move above
its previous major top of 12430.50 and
sustain. Similarly
moving up it will face resistance at 12770---12818---13419---13611—13640.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 on
the closing basis at this point of time.
It is most important to note
that it will face very tough resistance in the range of 12770—12818 and it
might make top in this range or earlier also for the time being or may be for
good for a reasonable period of time, it did hit 12769.75 intraday today then
went down sharply but bounced back sharply too and closed near the high, but be
watchful and alert in long trade in this range. But sustained close above 12818
on the closing basis can take it to 13400 level.
In view of the above observation long trade can be tried, if it moves
and maintains above 12818 for some
time or on the decline at appropriate points or near 12478.40 & 12430.50 but
not below it for the day. Please note that long position can be tried above 12478.40 in any case for the day. It is suggested that safe traders should
avoid buy on decline for the day. Since it is showing robust 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 or may be for 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 if it moves and maintain above 12818 for some time with a
stop loss of 12760.
Or
Buy on decline at appropriate points or near 12478 &
12430.50 with a stop loss of 12400.
2. Sell if it does not move above 12818 in first
hour of trade with a stop loss of 12840. It could be a risky trade but worth
trying for intraday corrective move.
Or
Sell if it moves and maintains below 12400 for
some time with a stop loss of 12490. 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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