Open—14453.30
--High—14459.15—Low—14222.80---Close-14281.30 on 18.1.2021.
Support:14222.80/14177/14046/14024.85/13996/13981.75/13945/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.
Resistance: 14310/14551/14602/14653.35/14840/14890/15022/15471/15868.
(Bold and underlined figures
are most important)
It corrected for the 2nd
consecutive day and if it does not bounce back sharply in next 2-3 days then correction may deepen in
coming days. 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 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 14294.18---14199.50---13917.53---13741.65---12967.78---12430.50(except
for 12430.50 other figures can change). Today it has broken its first key
point of 14294.18 and if it sustain
below it on the closing basis then it will signify that it has gotten into very
short correction and break below 14199.50
will accelerate the down move further and it can last 4-5 days or more, sustained break below 13917.53 on the closing basis will push it into deep real short
term correction mode which can last slightly longer, sustained break below 13741.65 will push it into medium term
correction mode which can last even longer and most importantly sustained break below 12967.78 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. It is important to mention
here that it has closed below its recent important point of 14310 today and if
it sustains below it on the closing basis then it can come down to 13768 levels
or below which may please be noted.
The overall technical setup is still looking o.k. but it has
broken its certain short term moving averages after a long time, furthermore negative
divergence has also surfaced after a long time and it can come into play if it
remains below the short term averages, therefore if it does not bounce back
above the short term averages then down move is certain to deepen and it can
seek much lower levels in coming days, which may please be noted. Please note
that last two days fall gave an indication and there is a strong possibility that
either it has already made a top at 14653.35
for now and if not then most likely to make the top in the range of 14655---14840---14960---15022 or
earlier also in coming days. Since the correction is on therefore it is
suggested to be careful and cautious in the long trade but it would be better
if it is avoided till the correction completion looks visible. Please note that
it can stage a pullback only if it closes and sustain above 14324.50 as of now, else correction
will continue.
Moving down its critical support points
at 14199.50---14024.85---13917---13777.50---13741.65---13693.
Moving up its critical resistance points
at 14294.18---14310---14654---14840---14940---15022---15471---15868.
In view of the above observation for safe traders long trade should be
avoided till clarity on correction completion emerges. However, aggressive
traders can try long trade on decline but not below 14137 or if it moves and sustain above 14324.50 for some time for taking advantage of the possible
pullback rally. In this context please note that pullback rallies are treacherous
in nature and can end abruptly trapping the traders unaware so be extra careful
in the long trade. It is advised to avoid long trade now. Since it gotten into correction mode therefore
short trade should be attempted on the rise or on the price breakdown for
taking advantage of the down 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 14324.50 for some time with a stop
loss of 14270.It is for aggressive traders and could be a highly risky trade.
Or
Buy on decline near 14137 but not below it with a stop loss of
14100.It is for aggressive traders and could be a highly risky trade.
2. Sell on the rise near or within the range of 14375---14428
with a stop loss of 14460.It could be a risky trade but worth trying.
Or
Sell if it maintains below 14310 for some time
with a stop loss of 14365.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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