Open—13488.50--High—13503.55—Low—13399.30---Close-13478.30
on 10.12.2020.
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: 13549/ 13580/13611/13650/13721/13768/14296.
(Bold and underlined
figures are most important)
As expected it corrected today but it is well above its most critical
and important points which are placed at 13275--12900
& 12795 for 11.12.2020(figures
can change every day) and also above other key points which are at 13369.89---13355.70---13073.73---12897.85---12430.5---12123.98(except
for 12430.50 other figures can change), therefore today’s correction was
less than the very short correction and if it does not break the first two key
points in next 1-2 days then it could bounce back sharply. 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. Today’s correction was very light and if it hold the first two key
points for the next 1-2 days and crosses 13530
on the closing basis then it could resume the up move again else correction may
slightly deepen. The bias is on the 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 13530 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 13530 for some time with a
stop loss of 13470.
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 13549 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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