Open—13764.40--High—13772.85—Low—13658.60---Close-13760.55
on 18.12.2020.
Support:13721/13650/13611/13549/13435.45/13418/13399.30/13242/13145.85/12963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance: 13768/13943/14034/14055/14095/14170/14296/14310.
(Bold and underlined
figures are most important)
It is showing good strength and after see-saw movement during the day
it closed on a positive note. Please note that the gap it created on 16.12.2020 is still there and if it
makes an effort to fill the gap in next 1-2
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 13630--12881 & 12734 for 21.12.2020(figures
can change every day) and also well above other key points which are at 13541.30---13527---13245.13---13069.25---12430.5---12295.38(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 13541.30 & 13527
can push it into very short correction, sustained break below 13245.13 on the closing basis will push
it into short term correction mode, sustained break below 13069.25 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 12295.38 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 13630---12881 & 12734 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. It went
past its first targeted topping out point of 13769 today also intraday but settled down below it at the close.
In view of this it is suggested to be careful in long trade from now on. The
overall bias as of now is on the upside.
It is important to mention here that it
did cross the first targeted top out point of 13769 today again but closed shade
below it and if it does not move and sustain above it on the closing basis it
could still correct from here, but if it moves above 13768 and sustain on the
closing basis then the next possible strong top out range could be 13913---13943---14055---14095---14170---14310
(first four figures will change every day) which may please be noted. The
technical setup is very strong for the continuation of the up move but since it
has entered the tough territory, so there is a strong possibility that it can correct
also and the correction could be moderate to reasonably sharp. Therefore I once
again reiterate that traders should be extra alert and cautious in the long
trade henceforth.
Moving down its critical support points
at 13721---13650---13611---13600---13541.30---13527---13478.30---13399.30---13281---13245.13---13145.75---13069.25---12986---12918---12809---12790---12730---12709.05---12607.70---12566---12430.50.---12295.38.
Moving up its critical resistance points
at 13769---13791---13886---13913---13943---14055---14095---14170---14310.
In view of the above observation, it is suggested to try long trade if
it moves and maintains above 13775 for
some time or can buy on decline at appropriate points or near 13630 but not below it. However
aggressive traders can buy on decline but not below 13541. Please note that buy below 13630 could be a risky trade for the day. It is in strong up momentum
therefore short trade in general should be avoided, but since it has entered into
tough range therefore short trade can also be attempted on the rise at the
appropriate price 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 13775 for some time with a
stop loss of 13750.
Or
Buy on decline at appropriate point or near 13630 but not below
it with a stop loss of 13600. It could be a risky trade
Or
Buy on decline at appropriate point or near 13541 but not below
it with a stop loss of 13500. It is for aggressive traders. It could be a risky
trade
2. Sell on the rise near or within the range of 13860---13890
with a stop loss of 13930. 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 13500 for
some time with a stop loss of 13550. It could be a highly risky trade but worth
trying for intraday correction.
Or
Sell if it does not move above 13775 even in
intraday in first one and half hour of trade with a stop loss of 13810. It
could be a risky trade.
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.