Open-29607.50--High-29711.15--Low—28976.75—Close-29625.95
on 22.12.2020
Support:29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
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)
After yesterday’s sharp fall it staged a pullback rally
today and closed with a gain of 169.50
points. It is well above its benchmark point of 29314. Its other key points are placed at 30521.51—30467.98---30387.23---30180.11---29214.73---28457.69---27445.57(figures
can change) and it is well below its
first 4 key points also therefore very
short term correction mode is on 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.
The overall technical setup is still o.k. and it may resume the up move
after correction is over. It staged a pullback today but the correction is
still on, furthermore the negative divergence has also
surfaced again which is a bad indication and if it comes into play then it can
come down to 28278---24000 levels as
of now. It has also broken its short term moving averages after a long time, furthermore
as mentioned above it is well below some of the key points so it is an
extremely weak sign and if it does not bounce back above those key points and
above short term averages in next 2-3
trading session then the corrective move could deepen further with an
accelerated pace, which may please be noted. The short term bias is negative now but the
long term trend is still up as of now.
Moving down its critical support points
at 29441.30---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—30481---30521.51—30552---30807.25---30945.20---30996---31039---31181----31660---31786—32157—32361---32613.10---32763.
Please note that after yesterdays severe fall today’s
pullback rally was weak one, but if it has the strength then it may last for
another 2-3 days or more and it can
move up to 29729---29961---30193---30481---30552
level, it may fizzle out also at any of these points or earlier but if it
moves and sustain above 30552 on the
closing basis then it may resume the up move again. In view of this safe
traders should avoid long trade till it moves and sustain above 30552 marks on the closing basis, avoid
buy on decline completely for the day. However aggressive traders can try long
trade if it maintain above 29630 for
some time or on decline near 29456
but not below it for taking advantage of pullback rally, but buy on decline
could be a risky affair for the day. In this context please note that pullback
rallies are treacherous in nature and can end abruptly also trapping traders on
the wrong foot, so be careful in the long trade at this point of time. Since
correction is on therefore it is suggested to attempt short trade on the rise
at appropriate price range or on the price breakdown for taking advantage of
the down move till clarity on correction completion emerges. It is important to
mention here that break below 29441.30
on the closing basis will end this pullback rally for good and sustained break
below the benchmark point of 29314 on
the closing basis will accelerate the fall.
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 29456 but not below it with a stop loss
of 29350. It is for aggressive traders but it could be a risky trade.
Or
Buy if it maintains above 29630 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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