Open-29812.30--High-30464.40--Low—29687.70—Close-30358.30
on 28.1.2021
Support:30284/30202.10/30197.85/30165.65/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
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)
It exhibited wild swing on both the side but at the
end closed on a positive note. It is weak on short term technical parameter but
looking at today’s movement it seems that it is about to give a pullback rally
may be on 29.1.2021. 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 more 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 and 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 of its 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 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. Please note that in view of today’s move it seems that a pullback rally is around the corner and may happen on 29.1.2021 but the overall short term trend is down but the long term bias is still up as of now.
It is important to
mention here that if it does not break 29687.70 levels even in intraday and
closes above 30432.20( if 29687.70 is breached during intraday than 30432.20
figure will change downward ) and
sustain then chances are that it can give a pullback rally.
Moving down
its critical support points at -30284---30197.85---29907---29749.50---29314---29149.90---28976.75---28923.10---28894.95---28580.90.
Moving up its critical resistance points
at 30432.20---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 short term correction mode now but in
view of the above observation chance of a pullback rally seems very likely and
it can happen on 29.1.2021 also, therefore those who wish to take
advantage of a possible pullback rally can try long trade if it move and
sustain above 30433 for some time or on the decline but not below 30284.
Please note that if it closes above 30433 then this rally can extend to
30892---31265---31637---32098 levels. In this context please note that pullback
rallies are treacherous in nature and can end or fizzle out abruptly at any of
these points or earlier also,
therefore be alert and extremely cautious in the long trade. Since it is in correction mode
therefore it is suggested to adopt sell on the rise strategy for now and sell
after a reasonable rise in the appropriate range or on the price breakdown for
taking advantage of the down correction or otherwise but with extreme alertness
because the long term technical setup is 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. Buy if it moves and maintain above 30433
for some time with a stop loss of 30200.
Or
Buy on decline near but not below 30284 with a stop loss of
30200.
2. Sell if it moves and maintains below 30200 for
some time with a stop loss of 30380. It could be a risky trade but worth
trying.
Or
Sell on the rise near or
within the range of 31100---31200 with a stop loss of 31320.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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