Open-30545.35--High-30610--Low—30202.10—Close-30510.35
on 10.12.2020
Support:30416/30362/30281/30197.85/29919.75/29784.75/29612.55/29314/29149.90/29030.90/28923.10/28580.90/28525.45/27703.30/27589/27164/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:30649/30801/30807.25/30899/30996/31649.45/31660.75/31783/32157/32613.10.
(Bold and underlined figures are most
important)
As expected it did corrected today and went below its first 3 key points in intraday but at the end
of the day recovered and closed above all its key points which indicates
strength and is a positive sign for the up move to continue. Its benchmark
point is 29314 and other key points
are at 30416.12—30362.59---30281.83---30074.72---29109.34---28352.30---27340.17(figures
can change). It is well above its benchmark and other key points which a
very positive sign, therefore today’s correction was less than the very short
correction and if it does not break the first three key points on the closing
basis then it could bounce back in a day or two. Please note that sustained
break below 30416.12 & 30362.59
can push it into very short correction and break below 30281.83 & 30074.72 will increase the intensity of it but it
may be short lived, sustained break below 29109.34
on the closing basis will push it into real short term correction mode
which can last for few days, sustained break below 28352.30 will push it into medium term correction mode which can
last even longer and most importantly sustained break below 27340.17 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 looking good for the up move to
continue, furthermore the negative divergence has also started to fade out
therefore it has to be seen whether it completely fades out or not in coming
days. So watch out. Today’s correction was very light and if it hold the first
three key points for next 1-2 days
on the closing basis and crosses 30710 on the closing basis then it
could resume the up move again else correction may slightly deepen. The bias is
on the upside as of now.
Moving down its critical support
points at 30416.12---30362.59---30281.83---30197.85—30074.72---29956---29783---29735.92---29613---29436---29314---29109.34..
Moving up its critical resistance points at 30545---30649---30807.25—30986---31180----31660---31783—32157—32361---32613.10.
In view of the above observation, it is suggested to try long trade if
it moves and maintain above 30610 for
some time or can buy on decline at appropriate points but not below 30416.
It is in up momentum therefore short trade in general should be avoided,
but it can be attempted on the rise at the appropriate price range or on the
price breakdown for taking advantage of the intraday corrective move. I once
again reiterate that one should be extremely cautious and careful in the long
trade at this point of time.
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 30610 for some time with a
stop loss of 30495.
Or
Buy on decline at appropriate points or near 30416 but not below
it with a stop loss of 30340.
2. Sell on the rise near or within the range of 31100---31200
with a stop loss of 31275. It could be a risky trade but worth trying for
intraday gain. Square off the trade in any case before the day ends, but can be
carried forward if the trade is in substantial profit else not.
Or
Sell near if it does not move above 30610 even in
intraday trade for first hour of trade with a stop loss of 30710. It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 30340 for
some time with a stop loss of 30425. 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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