Open—16304.40--High—16336.75—Low—16223.30---Close-16238.20
on 6.8.2021.
Support:16223/16180/16074/16024/15962.25/15920/15915.65/15899.80/15885.75/15877/15835.55/15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75.
Resistance: -16240/16320/16397/16583/16631/16690/17360/17503/19575/20390.
(Bold and underlined
figures are most important)
It corrected after 4 days of rise and closed with a loss
of 56.40 points. It was a most normal
correction and it could still move up to 16255---16337---16415---16584---16631---16690---16750, please
note that moving up the range of 16255—16415 would be a
very tough resistance range and it could correct in this range and it did corrected
within the range today, therefore it seems that it will be tough to cross this
range, so be vigilant and alert in this range. Please note that break below 16152(it may change) could push it into
very short term correction mode, but as long as it holds 15962.25 level there is no major threat to the uptrend. Similarly
moving down it will find support at 16223---16135---16085---16074---16024---15962.25, but sustained break
below 15962.25 may accelerate the
fall.
It is important to mention here that
its long term technical setup is good for the uptrend
to continue. The short term outlook has improved drastically and one very
important technical indicator has also become positive on the daily chart but
on the weekly chart it is still negative this weekend which is concerning but
if it continues it’s up move then it may also come into positive territory next
weekend and if does not then it may start drifting down. So till it comes into
positive mode it is suggested that not to be fearless but be cautious and
careful in your long trades.
In view of the above observation, long
trade can be tried if it holds 16223
for some time or if it moves above 16265
and maintain for some time. It is suggested to avoid buy on decline for the
day. It is in strong up move but even then short
trade can also be tried after reasonable rise or can be tried on the price
breakdown for taking advantage of the intraday gains.
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 moves above 16265 and maintain for some time with a
stop loss of 16200. It is for both the traders.
Or
Buy if it holds 16223 levels for some time with a stop loss of
16190. It is for both the traders.
2. Sell on the rise near or
within the range of 16330---16350 for some time with a stop loss of 16375. It
could be a risky trade but worth trying for intraday gain.
Or
Sell if it moves below 16223
and maintain for some time with a stop loss of 16265. It could be a highly risky
trade but worth trying for intraday gain.
Or
Sell if it moves below 16150
and maintain for some time with a stop loss of 16200. 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.
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Thank you for sharing your views.