Open—13741.90--High—13777.50—Low—13131.45---Close-13328.40
on 21.12.2020.
Support:13399.30/13242/13145.85/13131.4512963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance:13399.30/13447.05/13548.90/ 13597.50/13611/13658.60/13769/13721/13777.50/13943/14034/14055/14095/14170/14296/14310.
(Bold and underlined
figures are most important)
It did cross the expected top out point of 13769(see my post of 17.12.2020 onwards) intraday today for the 3rd day in a row and made
new all-time high of 13777.50 and
then started slipping down and closed much below the top out point, which
indicate that it has topped out at 13777.50
for now. It has also broken its first most critical and important point of 13630 and this point will be at 13660 for 22.12.2020 however it is
still above the other two points which are placed at 12890 & 12775 for 22.12.2020(figures
can change every day). Its other key points which are at 13544.54---13530.35---13248.38---13072.50---12430.5---12298.63(except
for 12430.50 other figures can change) but it has broken its first two key
points of 13544.54 & 13530.35 decisively
so it is definitely into very short correction mode now which may last for 2-3 days but sustained break below 13248.38 on the closing basis will push
it into deep short term correction mode which can last slightly longer,
sustained break below 13072.50 will
push it into medium term correction mode which can last even longer, sustained break below 12430.50 will indicate that it could
lose steam for continuation of the up move and most importantly sustained break
below 12298.63 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 still o.k. but got a severe blow and as
expected and envisaged it topped out at 13777.50
today for now which is just a shade above the envisaged target point of 13769 and gotten into correction mode, it has decisively broken the recent bottom of 13478.30 on the line chart, furthermore
the negative divergence has also surfaced again which is a bad indication and
if it comes into play then it can come down to 12850—12780 levels as of now. It has also broken its short term
moving averages after a long time, furthermore it has broken some of the key
and critical points decisively so it is weak now and if it does not bounce back
above those key points and above short term averages in next 3-4 trading session then the corrective
move could deepen further with an accelerated, which may please be noted. The
bias has turned negative today. So watch out how long it last.
Moving down its critical support points
at 13248.38---13145.75---13131.45---13072.50---13023.36---12977.40---12921.04---12790---12730---12709.05---12636.35---12607.70---12430.50.
---12391.91---12298.63.
Moving up its critical resistance points
at 13377.45---13400.43---13530.35---13544.54---13588---13911---13633---13688---13777.50.
Looking at the intensity of today’s down move it seems that the
correction is going to last for few days, it is therefore suggested to avoid
long trade till it gives visible indication of correction completion. It may
give fair indication in next 2-3
trading session that how this down correction will culminate eventually, so
avoid long trade for next 1-2 days
at least. Please note that it has strong bed of support in the range of 13174---13095 so aggressive traders can
try long trade in this range but it could be a risky affair mind you. In view
of todays down move it is suggested to attempt short trade on the rise at
appropriate range or on the price breakdown for taking advantage of the down
move till clarity on correction completion emerges. But please note that if it
maintains and close above 13284 then
it could further scale up before falling again.
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 in the range of 13174---13100 but not below 13100 with a
stop loss of 13060. It is for aggressive traders and it could be a risky trade.
Or
Buy if it maintains above 13284 for some time with a stop loss
of 13260. It could be a highly risky trade.
2. Sell on the rise near or within the range of 13460---13550
with a stop loss of 13600. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves and maintains below 13284 for
some time with a stop loss of 13330.
Or
Sell if it moves and maintains below 13095 for
some time with a stop loss of 13140. 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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