Open-32732.80--High-32842.30--Low—31985.55—Close-32186.90
on 21.1.2021
Support:31725.85/31650.90/31510.25/31297.30/31264.05/30945.20/30893.65/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:32465.45/32561/32613.10/32718.95/32842.30/33043/33127/33379/33506/34130/34447/35079.
(Bold and underlined figures are most
important)
For the last two days it has been rising and today
also it opened with an up gap and made a new all-time high of 32842.30 but could not sustain at the higher
level and sharply slipped down in the last hour of trade and closed below its
recent critical point of 32505 &
32465.45 which is a bad sign for the continuation of the up move. Its other
key points are placed at 32561---31930---29907---28895(figures
can change) It has decisively broken its first key point of 32561 also therefore it has slipped
into very short term correction mode and if it does not bounce back above it in
next 2-3 days then the down move may
accelerate and it can last for few days. Please note that sustained break below
31930 on the closing basis will push
it into real short term correction mode and it can last slightly longer,
sustained break below 29907 will
push it into medium term correction mode and it can last even longer and most
importantly sustained break below 28895 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 looking o.k. But after
sharp rise today in the morning session it fell sharply in the late afternoon
breaking few key points decisively which is an extremely weak sign and has
pushed it into short term correction mode. Furthermore in last seven days it
went past its previous all-time high of 32613.10
three times intraday but could not close above it which is also a weak
indication, therefore until and unless it moves above it and sustain on the
closing basis, it is doubtful to resume the steady up move again. It is
important to mention here that it has also made lower top and bottom on the
line chart after long time so moderate to deep correction is on the card provided
it does not bounce back above its mentioned key points, looking at today fall
bounce back is less likely. Therefore it is suggested to avoid long trade till
clarity on correction completion emerges. The long term bias is still up as of now.
Moving down
its critical support points at -32106—31930---31889---31811.75---31650.90---31510.25---30945.20---30893.65---30570---30197.85---29813---29314---28800.71.
Moving up its critical resistance points
at 32276---32465.45---32505---32561---32613.10---32719---33010---33043---33126---33379---33681---34130---34323---34447---35440---36175---37700.
As it has made lower top and bottom on the line chart after a long time
and also broken key and critical points therefore it has slipped into
correction again. Therefore for safe traders it is suggested to avoid long
trade till it gives visible indication of correction completion. However,
aggressive traders can try long trade on decline near but not below 31810 or if it moves and sustain above 32310 for some time. But please note
that in view of today’s fall long trade for the day could be a risky affair. Since
it has gotten into correction again therefore it is advised to avoid long trade
for now and suggested to attempt short trade on the rise in the appropriate
range or on the price breakdown for taking advantage of the intraday down
correction or reasonable 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 maintains above 32310 for some time with a stop
loss of 32200.It is for aggressive traders. It could be a risky trade.
Or
Buy on decline at appropriate points or near 31810 but not below
it with a stop loss of 31700.It is for aggressive traders and could be a risky
trade.
2. Sell if it moves and maintains below 31810 for
some time with a stop loss of 31950.It could be a risky trade but worth trying.
Or
Sell on the rise near or
within the range of 32525---32600 with a stop loss of 32730.It could be a risky
trade but worth trying.
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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