Open--13264.85--High—13366.65—Low—13241.95---Close-13355.75
on 7.12.2020.
Support:13294/13281.60/13145.85/13075/13055.15/13048.63/13032/12963/12938.25/12858/12769.75/12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60.
Resistance: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 12890 &
12790 for 8.12.2020(figures can
change every day). Its other key points are at 13230.66---13216.46---12934.50---12758.61---12430.5---11984.74(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 13230.66 & 13216.46
can push it into very short correction, sustained break below 12934.50 on the closing basis will push
it into short term correction mode, sustained break below 12758.61 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 11984.74 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 looking strong for the up move to continue,
furthermore the negative divergence has also started to fade out therefore it
has to be seen whether it completely fades out or not in coming days. So watch
out. But market is displaying extra ordinary exuberance for some time now and it
has been rising constantly and sometime vertically too which is making it
vulnerable for correction also. Therefore in light of this it is advised that
one should be very alert and cautious in the long trade henceforth. No doubt
that the bias is on the upside as of now.
Moving down its critical support points at 13294---13280.05---13242.50---13230.66---13216.46--13145.84---13075---12963---12934.50---12868.30---12758.61---12730---12692.45---12613---12530---12430.50.---12340---12245---12150---11984.74.
Moving up its critical resistance points at 13365.50---13419---13611—13640---13721--13768.
In view of the above observation long trade can be tried on decline at
appropriate points or near 13230 but
not below it or if it maintains above 13367
for some time. It is in strong up momentum and negative divergence has also started
fading out therefore short trade in general should be avoided, but it can be
tried after a reasonable rise and in the appropriate range or on the price
breakdown for taking advantage of the intraday
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 13367 for some time with a
stop loss of 13320.
Or
Buy on decline near 13230 but not below it with a stop loss of
13200.
2. Sell on the rise near or within the range of 13460---13500
with a stop loss of 13550. It could be a risky trade but worth trying for
intraday gain. Square off the trade in any case before the day ends ,but can be
carried forward if the trade is in substantial profit else not.
Or
Sell if it moves and maintains below 13200 for
some time with a stop loss of 13250. 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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