Open-31236.25--High-31287.05--Low—30165.65—Close-30284.55
on 27.1.2021
Support:30202.10/30197.85/30165.65/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:30893.65/30945.20/31264.05/31297.30/31510.25/31650.90/31725.85/32465.45/32561/32613.10/32718.95/32842.30/33043/33127/33379/33506/34130/34447/35079.
(Bold and underlined figures are most
important)
As expected it went down sharply today and closed near
the low of the day with a huge loss of points, which indicate inherent weakness
in it and down move may continue for some more time. Please note that its key
points for the year 2021 are 31265.05---31297.30---32465.45 &
32613.10 and it is way below these points now which is a terribly weak sign
and if it does not bounce back above at least 31265.05---31297.30 points and sustain above it on the closing basis
then chances are that it could slip into long term correction mode, which may
please be noted. Its other key points are placed at 32561---31930---29907---28895(figures can change) It is already way below its 1st & 2nd key points of 32561 & 31930 therefore
it is in short term correction mode for sure and down move is expected to
extend for few day may be with an
accelerated pace in coming days. Please note that 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 short term technical setup is extremely weak and it is
already into short term correction mode and looking at the intensity of the
fall today it seems that the correction is going to last for some time and
could be painful too, but the long term trend is still o.k.as of now. It is
already running way below its short and some medium term averages, it has also
broken some key indicators, it is also making lower top and bottom on the line
chart, broken bottom on the bar chart also and most importantly RSI is showing
huge negative divergence on the daily and weekly chart and it has achieved its first
target of below 30400(see my post for 27.1.2021)
today and if it remains below its short term moving averages and critical
points for some more time then the it could go down to 29450 level or much below it also in coming days, which may please
be noted. The overall short term technical parameters and indicators have
turned bad and are pointing towards further fall from here; therefore it is
suggested to avoid long trade till clarity on correction completion emerges. Please
note that it has to move above some of its critical points and short and medium
term moving averages to regain some strength for moving up else it may drift
downward off course with intermittent pullback rallies. The long term bias is still up as of now.
It is important to
mention here that if it does not break 30165.65 levels even in intraday and
closes above 30797.35( if 30165.65 is breached during intraday than 30797.35
figure will change downward ) and
sustain then chances are that it can give a pullback rally.
Moving down
its critical support points at -30197.85---29907---29749.50---29314---29149.90---28976.75---28923.10---28894.95---28580.90.
Moving up its critical resistance points
at 30893.65---30945.20---31264.05---31297.30---31510.25---31526---31650.90---31725.85---31930—32264.05---32297.30----32465.45---32505---32561---32613.10---32718.95---32842.30---33010---33043---33126---33379---33681---34130---34323---34447---35440---36175---37700.
It is into real short term correction mode now therefore long trade
should be avoided till clarity on correction completion emerges. Since it is in
correction mode therefore it is suggested to adopt sell on the rise strategy
after a reasonable rise in the appropriate range or on the price breakdown for
taking advantage of the down correction or otherwise but with alertness because
the long term technical setup is still not that bad as of now.
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. Sell if it moves and maintains below 30165 for
some time with a stop loss of 30300.It could be a risky trade but worth trying.
Or
Sell on the rise near or
within the range of 30700---30800 with a stop loss of 30900.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.
No comments:
Post a Comment
Thank you for sharing your views.