Open13177.40--High—13280.05—Low—13152.85---Close-13258.55
on 4.12.2020.
Support:13145.85/13075/13055.15/13048.63/13032/12963/12938.25/12858/12769.75/12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761.
Resistance:13281.60/13294/13366/13419/13611/13640/1377914334/15043.
(Bold and underlined
figures are most important)
It is exhibiting extra ordinary strength in the up move and hitting new
all time high almost every day, which is a very positive sign for the up move
to continue. Furthermore it is well above its most critical and important
points which are placed at 12880 &
12780 for 7.12.2020(figures can
change every day). Its other key points are at 13164.50---13150.30---12868.30---12692.45---12430.5---11918.60(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 13164.50 & 13150.30
can push it into very short correction, sustained break below 12868.30 on the closing basis will push
it into short term correction mode, sustained break below 12692.45 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 11918.60 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 one should be very careful with the extra ordinary exuberance displayed
by the market for some time now, because certain technical indicators are
showing distinct negative divergence despite sustained up move, 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 till 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 13242.50---13164.50---13150.30---13145.84---13075---12963---12890---12868.30---12785---12730---12692.45---12613---12530---12430.50.---12340---12245---12150---11968---11918.60.
Moving up its critical resistance points at 13281.60---13294---13365.50---13419---13611—13721---13640.
In view of the above observation long trade can be tried on decline at
appropriate points or near 13150 but
not below it or if it maintains above 13281.60
for some time. 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 the appropriate
price range 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 13281.60 for some time
with a stop loss of 13240.
Or
Buy on decline near 13150 but not below it with a stop loss of
13130.
2. Sell on the rise near or within the range of 13370---13420with
a stop loss of 13450. It could be a risky trade but worth trying for intraday
gain. Square off the trade in any case before the day ends.
Or
Sell if it moves and maintains below 13130 for
some time with a stop loss of 13170. 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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