Open—15756.50--High—15761.50—Low—15450.90---Close-15683.35
on 18.6.2021.
Support:15678/15629.65/15606.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.
Resistance: - 15780/15835.55/15877/15902/ 15920/ 15989/16085/16223/16750.
(Bold and underlined
figures are most important)
It exhibited huge volatility today,
it plunged down sharply in the first half of the trade and hit an intraday low
of 15450.90 and then in the late
afternoon it made sharp recovery but closed with meager loss of 8.05 points. It managed to close within
the range of 15780---15606 which is
o.k. but decisively breaking the range intraday is a weak sign. Furthermore it
is below some of its short term moving averages and some technical indicators
are also showing weakness, which is bad sign. Therefore to negate the present weakness
it has to move above 15780 and
sustain on the closing basis and eventually has to close above 15870 to continue the up move and this
should happen in the next week starting from 21.6.2021 else it can move down sharply again and this time it may
not bounce back as it did today, which may please be noted. Similarly sustained
break below 15606 can pull it down
sharply as it did today intraday. The long term technical setup is still looking
good for the continuation of the up move
as of now but with intermittent down correction 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 15635.35---16606.35---15566.90---15488.55---15471---15431.75. Please note that sustained break
below 15635 may push it again into a very short corrective mode, sustained
break below 15566 could
accelerate the fall, sustained break below 15488.55(this figure can change) on the closing basis will push it into deep short
term corrective mode and sustained break below 15471 & 15431.75 on the
closing basis will deepen the correction further 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.
The long term outlook is positive as of now but short term bias looks dicey and if it does not
give sharp up move in short time period then it could start down move again. Therefore
it is suggested to be extra cautious and careful in the long trade at this
point of time.
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, it
is suggested to trade the range of 15780—15606
as of now till either side breakout happen on the closing basis. Please note
that long trade below 15635 could be
a risky trade mind you because if it moves and sustain below it for a longer
time during the day then it could move down sharply. Since it has not yet
crossed some of its critical long term averages and broken some short term
moving average , 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.
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 if it hold 15635 & 15606 but not below it with a stop
loss of 15560. It could be a highly risky trade.
Or
Buy if it moves above 15780 and maintain for some time with a
stop loss of 15740. It could be a risky trade.
2. Sell on the rise near or
within the range of 15780---15820 with a stop loss of 15845. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it moves below15606
and maintain for some time with a stop loss of 15660.
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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