Open-30595.80--High-30607.50--Low—29201.20—Close-29456.45
on 21.12.2020
Support:29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:29784.75/30197.85/30202.10/30807/30899/30945.20/30996/31649.45/31660.75/31783/32157/32613.10.
(Bold and underlined figures are most important)
As envisaged and expected it corrected sharply today
and ended the day with a colossal loss of 1258.20
points. It breached its benchmark point of 29314
and 5 out of 7 key points intraday but managed to close above benchmark point
and 3 key points at the end of the
day. It exhibited extreme weakness today. Its other key points are placed at 30521.51—30467.98---30387.23---30180.11---29214.73---28457.69---27445.57(figures
can change), since it is decisively below its first 4 key points therefore it is definitely into short term correction
mode and it may last for few days, sustained break below 29214.73 on the closing basis will push it into real short term
correction mode which can last slightly longer, sustained break below 28457.69 will push it into medium term correction
mode which can last even longer and most importantly sustained break below 27445.57 on the closing basis can push
it into long term correction mode and will potentially threaten the uptrend
also, which may please be noted. It is important to mention that sustained
break below the benchmark point of 29314
on the closing basis can accelerate the fall.
The overall technical setup is looking o.k. but got a severe blow today
and as envisaged fell sharply, it seems that it has topped out at 30945.20 for now and may take some time
to regain the up momentum again. Furthermore the negative divergence is still
there which is very concerning with this kind of fall and if it comes into play
it could be devastating and it can come down to the level of 28278---24000 as of now. It has also
broken its short term moving averages after a long time, furthermore as
mentioned above it has broken some of the key points decisively so it is
extremely weak now and if it does not bounce back above those key points and
above short term averages in next 3-4
trading session then the corrective move could deepen further with an
accelerated pace, which may please be noted. The bias has turned negative
today. So watch out how long it last.
Moving down its critical support points
at 29314---29214.73---29053---28941---28457.69---28351----28144.19—27278.95---26918---26413.
Moving up its critical resistance points
at 29784.75---30197.85----30387----30468---30521.51—30592---30945.20---30996---31039---31181----31660---31786—32157—32361---32613.10---32763.
Looking at the intensity of today’s down move it seems that the
correction is going to last for few days, it is therefore suggested to avoid
long trade till it gives visible indication of correction completion. It may
give fair indication in next 2-3
trading session that how this down correction will culminate eventually, so
avoid long trade for next 1-2 days
at least. Please note that its benchmark point of 29314 is the strong support for it, so aggressive traders can try
long trade above it but in light of today’s fall it could be a risky trade mind
you. In view of today’s down move it is suggested to attempt short trade on the
rise at appropriate range or on the price breakdown for taking advantage of the
down move till clarity on correction completion emerges. But please note that
if it maintains and close above 29612
then it could further scale up before falling again.
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 29314 but not below it with a stop loss
of 29200. It is for aggressive traders but it could be a risky trade.
Or
Buy if it maintains above 29612 for some time with a stop loss
of 29550. It could be a highly risky trade.
2. Sell on the rise near or within the range of 30150---30300
with a stop loss of 30375. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves and maintains below 29200 for
some time with a stop loss of 29350. 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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