Open—13121.40--High—13128.50—Low—12983.55---Close-13113.75
on 2.12.2020.
Support:13075/13055.15/13048.63/13032/12963/12938.25/12858/12769.75/12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761.
Resistance:13145.85/13294/13419/13611/13640/1377914334/15043.
(Bold and underlined figures
are most important)
It exhibited good volatility during the day but at the end it closed
with a meager gain of 4.70 points,
the volatility could be a bad sign for steady up movement, which may please be
kept in mind. However it is well above its most critical points also which are
placed at 12885 & 12780 for 3.12.2020(figures can change every day). Its
other key points are at 13047.75---12765.80---12590---12430.5---11816(except
for 12430.50 other figures can change), and it is well above all the key
points now which is also a positive
sign. Please note that sustained
break below 13047.75 can push it
into very short correction, sustained break below 12765.80 on the closing basis will push it into short term
correction mode, sustained break below 12590
will push it into medium term correction mode, sustained break below 12430.50
will indicate that it could lose steam for continuation of the up move and most
importantly sustained break below 11816 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 looking good for the up move to continue but certain
technical indicators are showing distinct negative divergence despite positive
close today, which is haunting and if it comes into play then it could witness
sharp fall and then correction may last for some time. Please note that
divergence will come into play only once its short term averages are broken and
at present it is still above it all but came closer to few averages, therefore
it may take some time for divergence to happen in reality or it may fade out
also with positive divergence in coming days. The divergence is so strong as of
now therefore it is likely to happen and in that case it can come down to 12690 or below as of now, so watch out.
Therefore in light of this it is advised that one should be very alert and
cautious in the long trade henceforth.
Moving down its critical support points at 13075---13047.75---12963---12885---12780---12765.80---12730----12590---12530---12430.50---12340---12245---12150---11968---11915---11857---11816.
Moving up its critical resistance points at 13145.85---13225---13294---13419---13611—13640.
In view of the above observation long trade can be tried on decline at
appropriate points or near 12968 but
not below it or if it maintains above 13129
for some time. It would be relatively safe for risk-averse traders not to try
long trade below 13048 for the day
in fact it would be better for them to avoid buy on decline for the day because
it could be a risky affair. However aggressive traders can try trade as
suggested above. It seems that it has regained the up momentum again but the
pattern it had made and the volatility it showed today indicates that it could
correct also from here, furthermore some technical indicators are also showing
negative divergence since long which is pointing that it may seek lower levels
in coming days if divergence comes into play, therefore in light of this short
trade can also be attempted in appropriate condition or on the price breakdown
for taking advantage of the corrective move.
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 maintain above 13129 for some time with a stop loss
of 13090.
Or
Buy on decline at appropriate points or near 12968 but not below
it with a stop loss of 12930. It is for aggressive traders and could be a risky
trade.
Or
Buy on decline near 13048 but not below it with a stop loss of
13028. It is for safe traders.
2. Sell near if it does not move above 13129 in
first hour of trade with a stop loss of 13160. It could be a risky trade but
worth trying for intraday gain.
Or
Sell if it moves and maintains below 12960 for
some time with a stop loss of 13000. 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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