Open—13458.10--High—13548.90—Low—13449.60---Close-13529.10
on 9.12.2020.
Support:13435.45/13418/13365/13242/13145.85/12963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance: 13580/13611/13650/13721/13768/14296.
(Bold and underlined
figures are most important)
It is exhibiting robust 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 13250--12900 &
12795 for 10.12.2020(figures can
change every day). Its other key points are at 13369.89---13355.70---13073.73---12897.85---12430.5---12123.98(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 13369.89 & 13355.70
can push it into very short correction, sustained break below 13073.73 on the closing basis will push
it into short term correction mode, sustained break below 12897.85 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 12123.98 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 faded out, which is an extremely
good sign. But the market is displaying extra ordinary exuberance for some time
now and it has been rising constantly and sometime vertically too and today was
the 7th day of strait rise
and finally some technical indicator suggest that it is in overbought territory
which is making it more vulnerable for correction anytime soon. Therefore in
light of this it is advised that one should be very alert and cautious in the
long trade henceforth. The bias is on the strong upside as of now.
Moving down its critical support points at 13419---13369.89---13355.70---13259.15---13145.75---13073.73---12963---12897.85---12790---12730---12709.05---12607.70---12430.50.---12123.98.
Moving up its critical resistance points at 13548.90---13611—13650---13721--13768.
In view of the above observation, it is suggested to try long trade if
it moves and maintain above 13550 for
some time or can buy on decline at appropriate points but not below 13369. It is in strong up momentum therefore
short trade in general should be avoided, but it can be attempted on the rise at
the appropriate price range or on the price breakdown for taking advantage of the
intraday corrective move. I would once again reiterate that one should be
extremely cautious and careful in the long trade at this point of time.
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 13550 for some time with a
stop loss of 13500.
Or
Buy on decline at appropriate points or near 13369 but not below
it with a stop loss of 13330.
2. Sell on the rise near or within the range of 13625---13650
with a stop loss of 13680. 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 near if it does not move above 13548.90 even
in intraday trade for first hour of trade with a stop loss of 13570. It could
be a risky trade but worth trying.
Or
Sell if it moves and maintains below 13330 for
some time with a stop loss of 13375. 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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