Open-35874.30--High-36128.90--Low—35097.55—Close-35257.20
on 22.2.2021
Support:32842.30/32718.75/31725.85/31650.90/31510.25/30945.20/30893.65/30197.85/29687.70
Resistance: 35428.15/35584.60/35648/35815.75/35884/36086/36397/36615.20/36647/36897/37170/37284/37708.25/38286/38520.
(Bold and underlined figures are most
important)
The correction continued for the 5th straight day and it plunged down by 584.40 points today which a very weak sign and it is likely to go down further in coming days with intermittent relief rallies from time to time. Please note that its critical and most important points for the year 2021 are 32613.10---32465.45---31297.30 & 31264.05 and it is well above these points now and as long as it hold these points on the closing basis uptrend will remain intact. Its other key points are placed at 37170---35815.75---35648---33625---32612.92(figures can change) It is well below its 1st key point and today it has decisively broken its 2nd & 3rd key points also therefore it has slipped into real short term correction mode and if it does not bounce back at least above 35714 in next 2-3 trading session and sustain on the closing basis then the correction may last longer, sustained break below 33625 will push it into medium term correction mode and it can last even longer and most importantly sustained break below 32612.92 on the closing basis can push it into long term correction mode and can potentially threaten the uptrend also, which may please be noted.
It is in a short term correction mode now but can give relief
rally any time and if it moves and sustain above 35714 (this figure will change and scale downward if it break the level
of 35097.55) on the closing basis then only the relief rally can last some
time and sustained close above 36270(figure
may change) may give it some momentum else down move may continue. It is
important to mention here that sustain close above 37182(this figure may change) may resume the steady up move again.
Please note that the short term technical setup has shaken a bit but the long
setup is still o.k.
Moving down
its critical support points at -34812----34644---34556---34373---34018.
Moving up its critical resistance points
at 35648---35815.75---35884---36095---36403---36615.20---36711---36897----37100---37284---37708.75---38286---38520---38914---39021---41145---42808.
It is in correction mode therefore long trade should be avoided in
general but those who want to take advantage of the possible pullback or relief
rally for them safe traders should avoid buy on decline and can only try long
trade if it moves above 35714 and
sustain for some time. However, for aggressive traders long trade can be tried
on decline also but not below35097.
Please note that buy on decline could be a risky proposition at this point of
time. Since it
is in correction mode now short trade can also be tried after a reasonable rise
in the appropriate range or on the price breakdown for taking advantage of the intraday
down correction or otherwise but with extreme alertness and caution because the
long term technical setup is still o.k. 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 35714
for some time with a stop loss of 35600.It could be a risky trade.
Or
Buy on decline near but not below 35097 with a stop loss of 35000.It
is for aggressive traders and could be a risky trade.
2. Sell if it maintains below 35000 for some time
with a stop loss of 35110. It could be a risky trade but worth trying for
intraday correction.
Or
Sell on the rise near the
range of 35737---35800 with a stop loss of 35900.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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