Open—13663.10--High—13692.35—Low—13606.45---Close-13682.70
on 16.12.2020.
Support:13650/13611/13549/13435.45/13418/13399.30/13242/13145.85/12963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance: 13721/13768/14034/14170/14296/14310.
(Bold and underlined
figures are most important)
It opened with an up gap and went further high and made new all time
high of 13692.35 and finally closed
with a big gain of 114.85 points.
Please note that the gap it created today is still there and if it makes an
effort to fill the gap in next 3-4
days, which is technically possible then it can come down to 13589.65. But it is well above its most
critical and important points which are placed at 13373--12905 & 12790 for 17.12.2020(figures
can change every day) and also well above other key points which are at 13479.49---13465.24---13183.32---13007.44---12430.5---12233.58(except
for 12430.50 other figures can change) which is a positive sign for the up
move to continue. Please note that
sustained break below 13479.49 & 13465.24
can push it into very short correction, sustained break below 13183.32 on the closing basis will push
it into short term correction mode, sustained break below 13007.44 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 12233.58 on the closing basis
can push it into long term correction mode and will potentially threaten the
uptrend also, which may please be noted. It is important to mention here that
sustained break below its most critical and important points of 13373---12905 & 12790 on the
closing basis could be an indication of a big fall ahead.
The overall technical setup is looking strong for the up move to continue,
the negative divergence has faded out again which is a positive sign. But since
it is approaching the first possible topping out target point of 13768
therefore one should be careful in long trade at this point of time. The
overall bias as of now is on the upside.
It is important to mention here that
there is possibility that it could top out for now anywhere in the range of 13611---13768
and then correct but if it moves above 13768 and sustain on the closing basis
then the next possible strong top out range could be 14034---14170---14310
which may please be noted. It is therefore suggested to be extra careful in the
long trade for the time being.
Moving down its critical support points
at 13650---13611---13548.90---13478.30---13407.02---13399.30---13392.83---13289---13193---13163---13098.71---13061.54---12980---12935---12809---12790---12730---12709.05---12607.70---12566---12430.50.---12323.15---12161.11.
Moving up its critical resistance points
at 13721—13768---13791---14034---14170---14310.
In view of the above observation, it is suggested to try long trade if
it moves and maintains above 13693 for
some time or can buy on decline but not below 13478. It is in strong up momentum therefore short trade in general
should be avoided, but keeping the possible top out range in mind short trade 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 13693 for some time with a
stop loss of 13640.
Or
Buy on decline at appropriate point or near 13478 but not below
it with a stop loss of 13440. It could be a risky trade
2. Sell on the rise near or within the range of 13750---13770
with a stop loss of 13800. 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 13440 for
some time with a stop loss of 13490. 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.
No comments:
Post a Comment
Thank you for sharing your views.