Open—14473.80
--High—14590.65—Low—14432.85---Close-14563.45 on 12.1.2021.
Support:14551/14310/14177/14046/14024.85/13996/13981.75/13945/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.
Resistance: 14602/14840/15022/15471/15868.
(Bold and underlined
figures are most important)
It has been showing robust strength which is good for the up move. Its most
critical points for the year 2021 are
14024.85 & 13981.75 and as long
as it holds these points the uptrend will be intact off course with intermittent
correction but sustained break below these points on the closing basis could be
a potential indication that it could slip into long term correction mode. Its
other key points are at 14246.28---14151.60---13869.62---13693.74---12919.88---12430.50(except
for 12430.50 other figures can change). It is well above the key points,
which is a positive sign for the continuation of the up move. Please note that
sustained break below the key points of 14246.28
& 14151.60 can push it into very short term correction mode which can
last for 2-3 days, sustained break
below 13869.62 on the closing basis
will push it into deep short term correction mode which can last slightly
longer, sustained break below 13693.74
will push it into medium term correction mode which can last even longer and
most importantly sustained break
below 12919.88 on the closing basis
can push it into long term correction mode and will potentially threaten the
uptrend also and finally sustained break below 12430.50 on the closing basis will further dampen the uptrend for
sure, which may please be noted.
The overall technical setup is looking strong
for the continuation of the up move. But the important observation is that it
has been making high for the last 14 days and new all time high for the last 12
days which indicate strength but on the other hand it is slightly concerning
also because it could be a distribution also at every new high and it could be
making a top for the time being in coming days possibly in the range 14602---14823---15022---15471
or earlier also. So it is already in the vulnerable territory and correction could
set in after the top is in place in the expected range, therefore it is
suggested to be extra ordinarily careful and cautious in the long trade henceforth.
The bias off course is positive as of now.
Moving down its critical support points
at 14310---14246.28---14151.60---14024.85---13981---13869.62---13777.50---13693.
Moving up its critical resistance points
at 14602---14823---15022---15471---15868.
In view of the above observation for safe traders long trade can be
tried if it moves and maintain above 14602
for some time or can be tried on decline but not below 14400. However aggressive traders can try long trade if it moves
above 14602 and maintain for some
time or on decline but not below 14246.
Since it is in the strong up move therefore short trade in general should be
avoided but short trade can also be attempted on the rise at 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 maintains above 14602 for some time with
a stop loss of 14550.
Or
Buy on decline at appropriate points or near 14430 but not below
it with a stop loss of 14390. It is for safe traders.
Or
Buy on decline at appropriate points or near 14246 but not below
it with a stop loss of 14200. It is for aggressive traders.
2. Sell near if does not move above 14602 even in
intraday in first two hours of trade with a stop loss of 14630.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 14390 for
some time with a stop loss of 14450.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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