Open—17670.85--High—17843.90—Low—17646.55---Close-17822.95
on 23.9.2021.
Support:17792.95/17756/17700/17630/17458/17436.50/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.
Resistance: -17920/17971/18027/18081/18548/19303.70/19575/20390.09.
(Bold and underlined
figures are most important)
It staged a sharp recovery today and moved
out of corrective mode and hit a new all-time high of 17843.90 and finally closed near the high with a robust gain of 276.30 points.
Despite certain technical indicators showing weakness on the daily chart,
today’s price movement indicates extraordinary strength in it, which is
positive indication but with caution. Moving up from here its target points or
stiff resistance points could be at 17920---17971---18027---18062---18081.50---18548(figures
may change), it could correct at any of these points or may move sideways
before further rise. Similarly moving down its critical support points would be
at 17792.95---17721.70
to17700---17497.50---17447---17293.91---17279(figures may change)
, break below 17700 (figure may change)
on the closing basis will push it into very short term correction mode,
sustained break below 17497.50 &
17447 on the closing basis will weaken it further and push it into short
term corrective mode and sustained break below 17279 on the closing basis could push it into deep short term
corrective mode which could drag it down with accelerated pace. But if it holds
17721.70---17700(figure can change) then
the up move shall continue with intermittent correction.
It is important to mention here that its long
term technical setup is good for the uptrend to
continue. Furthermore it is out of corrective mode but certain important
technical indicators are still giving weak signal despite robust rise today,
however price pattern does not have any weakness, therefore if it continues to
move up for the next 1-2 days then
indicators may also turn positive. The
long term bias is hugely positive as of now. The short term bias is also
positive but little caution is to be exercised in wake of weak technical
indicators.
In view of the above observation,
safe traders can try long trade if it moves above 17845 and maintain for some time or can buy on decline near 17721—17700 but not below it. However
aggressive traders can also try long trade on decline at appropriate points or
near 17500 but not below it. Please
note that long trade below 17700
could be a risky affair for the day. It exhibited strong up move today and out
of corrective mode also but intraday corrections happens; therefore short
trade can also be attempted after reasonable rise or can be tried on the price
breakdown for taking advantage of the intraday gains. Please note that short
trade could be a highly risky affair as it is in the strong uptrend, so be alert
and watchful in short trade.
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 17845 and maintain for some time with a
stop loss of 17780. It is for both the traders.
Or
Buy on decline at appropriate points or near 17721--17700 but
not below it with a stop loss of 17640. It is for both the traders and could be
a highly risky trade.
Or
Buy on decline at appropriate points or near 17500 but not below
it with a stop loss of 17430. It is for the aggressive traders and could be a
risky trade.
2. Sell on the rise near or
within the range of 17950---17985 with a stop loss of 18030. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17700
and maintain for some with a stop loss of 17740. It could be a highly risky
trade but worth trying for intraday gain.
Or
Sell if it does not move
above 17844 in first one and half hour of trade even intraday with a stop loss
of 17875. 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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