Open—14371.65
--High—14546.05—Low—14350.85---Close-14521.15 on 19.1.2021.
Support:14310/14222.80/14177/14046/14024.85/13996/13981.75/13945/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.
Resistance: 14546.05/14568/14602/14653.35/14840/14890/15022/15471/15868.
(Bold and underlined
figures are most important)
It bounced back sharply today which is good sign but it
should be watched for one or two days more to get confirmation that the
correction is over. 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). If bounced back vehemently today
above its first key point of 14294.18 and
critical point of 14310 which is an
extremely positive sign for the continuation of the up move. But if it break 14294.18 & 14199.50 again then it
will slip into very short term correction and time it could be severe, sustained
break below 13917.53 on the closing
basis will push it into deep real short term correction mode, sustained break
below 13741.65 will push it into
medium term correction mode which can last 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.
The overall technical setup is looking good. It was in down correction
for the last two days but robustly moved up today and bounced back above its
key point and short term moving averages also which is positive sign therefore
it seems that the correction may be over but it will get confirmed only once it
closes above 14568 and sustain else there
is a possibility that it may move down again. Please note that sustained close
above 14568 could take it near to
its all-time high level of 14653.35
again or beyond also. Once it happens then it is still likely to top out in the
range of 14840---14890---14960---15022---15471
or earlier also in coming days, which may please be noted. It is important to
mention here that if it does not cross 14568
intraday and closes below 14469 on
20-1-2021 and sustain below it then also it can slip into correction again
therefore the important range for the day would be between 14568---14469 breakout on the either side will decide the further
direction, which may please be noted. The long term bias is up as of now.
Moving down its critical support points
at 14469---14310---14294.18---14199.50---14024.85---13917---13777.50---13741.65---13693.
Moving up its critical resistance points
at 14568---14654---14840---14940---15022---15471---15868.
In view of the above observation for safe traders long trade can only
be tried once it closes above 14595.60
and sustain avoid buy on decline for the day. However, aggressive traders can
try long trade on decline but not below 14281
or if it moves and sustain above 14568
for some time. Please note that buying on decline for the day could be a risky
affair. Since the correction seems to be over but confirmation of it is yet to
happen, therefore short trade can also be attempted after a reasonable rise in
the appropriate range or on the price breakdown for taking advantage of the
intraday down correction.
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 14568 for some time with
a stop loss of 14520. It is for aggressive traders and could be a highly risky
trade.
Or
Buy on decline at appropriate points or near 14281 but not below
it with a stop loss of 14250.It is for aggressive traders and could be a highly
risky trade.
2. Sell if it does not move above 14568 levels for
the first one and half hour of trade with a stop loss of 14580.It could be a
risky trade but worth trying.
Or
Sell if it maintains below 14469 for some time
with a stop loss of 14530.It could be a risky trade but worth trying.
Or
Sell if it maintains below 14281 for some time
with a stop loss of 14330.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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