Open—15766.30--High—15800.45—Low—15566.80---Close-15635.35
on 9.6.2021.
Support:15629.65/15606.55/15471/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.
Resistance: 15733.60/ 15780/15920/16223/16750/17250/17503/19575/20390.
(Bold and underlined
figures are most important)
It did move above its first critical
resistance point of 15780 intraday
and maintained above it for reasonable period of time during the day but could
not close above it, therefore as envisaged it corrected sharply today and
closed with a loss of 104.75 points.
Furthermore it has broken its recent bottom on the line chart, which is a weak
sign and indicate that this down may last for few days off course with intermittent
relief rallies. Please note that to put it back on the up move track it has to
close above 15752 as of now and
eventually above 15800 for the further
steady up move. The technical setup is still looking good and it could resume
the up move once the down move is over and as long as it holds 15471 & 15431.75 levels on the closing basis, then it could still
scale up to 15780---15920---16223---16750---17250---17503---19575---20390
levels, but please note that it
could end the up rally for good at any of these points or earlier also or may
correct at any of these points and then may resume the rally again, both the
possibilities are there which may be kept in mind. Similarly
moving down its critical support points are at 15471---15431.75---& 15411.27(this
figure can change). Today’s
move indicate that it could get into deep corrective mode, sustained break
below 15471
on the closing basis will signal further weakness, sustained break below 15431.75 will
confirm the weakness and sustained break 15411.27(this figure can change), will push it
into deep short term corrective mode and may threaten the uptrend also, which
may please be noted. Moving down other critical support levels will be at 15374---15273---15257---15176---15111---15084---14977---14906---14884.
It seems that top is in the place for
the time being and down move may extend,
so it is strongly suggested to avoid long trade till clarity on correction
completion emerges, however those who wish to take a chance can try long trade
as long as it holds 15471 & 15431.75. The long term bias is positive as of now but the very
short term outlook is weak.
It is
important to mention here that technically this on-going uptrend is showing enough
strength and looking good for the continuation of the up move but this up rally
is not in sync with the fundamentals and you are well aware that it is the
fundamentals which eventually hold the Priceline. Therefore this on-going up
rally may deceive you at any point of time, so be alert and careful in long
trade henceforth.
In view of the above observation for
safe traders long trade can only be tried if it closes above 15752 and avoid buy on decline for sure.
However aggressive traders can try long trade if it holds 15606 or on decline at appropriate points but not below 15471. Please note that buying on
decline below 15606 could be a risky
trade because if it moves and sustain below it for longer time during the day
then it could further correct sharply. Since it has not yet crossed some of its
critical averages and seems that it has gotten into very short correction mode,
therefore short trade can also be tried after reasonable rise
or can be tried on the price breakdown for taking advantage of the corrective
move. It is better to avoid long trade till it closes above 15752.
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 (Suggested)
1. Buy on decline at appropriate points with self defined stop
losses or near 15471 or near 15431 but not below it with a stop loss of 15390. It
is for the aggressive traders and could be a highly risky trade.
Or
Buy if it holds 15606 with a stop loss of 15560. It is for the aggressive
traders and could be a risky trade.
2. Sell on the rise near or
within the range of 15725---15752 with a stop loss of 15810. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 15606
and maintain for some time with a stop loss of 15675. It could be a highly risky trade but worth trying
for intraday gain.
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.
No comments:
Post a Comment
Thank you for sharing your views.