Open—13215.30--High—13216.60—Low—13107.90---Close-13133.90
on 3.12.2020.
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 opened with an up gap today at 13215.30
and made a new all time high of 13216.60
and finally closed with a small gain of 20.15
points, but the good thing is that it has filled the gap during the day. It
still looks good for the up move but it is showing volatility which could be a
bad sign for steady up movement, which may please be kept in mind. However it
is well above its most critical and important points which are placed at 12890 & 12785 for 4.12.2020(figures can change every day). Its
other key points are at 13116---13101.80---12819.85---12643.95---12430.5---11870.10(except
for 12430.50 other figures can change), and it is above all the key points
now which is also a positive sign. Please note that sustained break
below 13116 & 13101.80 can push
it into very short correction, sustained break below 12819.85 on the closing basis will push it into short term
correction mode, sustained break below 12643.95
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 11870.10
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 well above it all, therefore it may
take some time for divergence to happen in reality or it may fade out also with
positive divergence in coming days. But
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 13116---13101.80---13075---12963---12890---12819.85---12785---12730---12643.95---12590---12530---12430.50---12340---12245---12150---11968---11915---11857---11816.
Moving up its critical resistance points at 13145.85---13225---13242.50---13294---13365---13419---13611—13721---13640.
In view of the above observation for aggressive traders long trade can be
tried on decline at appropriate points or near 12968 but not below it or if it maintains above 13145.85 for some time. It would be
relatively safe for risk-averse traders not to try long trade below 13101.80 for the day. It seems that it
has regained the up momentum again, but 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 moves and maintain above 13145.85 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 13101 but not below it with a stop loss of
13065. It is for safe traders but could be a risky trade.
2. Sell on the rise near or within the range of 13225---13250with
a stop loss of 13280. It could be a risky trade but worth trying for intraday
gain.
Or
Sell if it moves and maintains below 13100 for
some time with a stop loss of 13150. It could be a highly risky trade but worth
trying for intraday correction.
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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