Open-29560.75--High-29941.40--Low—29446—Close-29883.30
on 23.12.2020
Support:29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:30197.85/30202.10/30807/30899/30945.20/30996/31649.45/31660.75/31783/32157/32613.10.
(Bold and underlined figures are most
important)
The relief rally continued today also and it closed
with a gain of 257.35 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) but it is still well
below its first 4 key points
therefore very short term correction mode is still on and the ongoing up move is just a pullback rally
as of now, 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 continued the relief rally today also but the
correction mode 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 is still below its short term moving averages, furthermore as mentioned
above it is well below some of the key points which is a weak sign and if it
does not bounce back above those key points and above short term averages in
next 1-2 trading session then the
corrective move could deepen further with an accelerated pace, which may please
be noted. The short term bias is still negative
now but the long term trend is up as of now.
Moving down its critical support points
at 29784.75---29441.30---29314---29214.73---29053---28941---28457.69---28351----28144.19—27278.95---26918---26413.
Moving up its critical resistance points
at 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 pullback or relief rally is on and if
it has the strength then it may last for another 2-3 days or more and it can move up to 29961---30193---30481---30552 level, it may fizzle out also at any
of these points or earlier also 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 for the day. However
aggressive traders can try long trade if it maintain above 29961 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 also 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
29400. It is for aggressive traders but it could be a risky trade.
Or
Buy if it maintains above 29961 for some time with a stop loss
of 29850. It could be a highly risky trade.
2. Sell on the rise near or within the range of 30200---30400
with a stop loss of 30480. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if does not move above 29961 even in intraday
in first one and half hour of trade with a stop loss of 30010.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 29400 for
some time with a stop loss of 29500. 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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