Open—17531.90--High—17557.15—Low—17452.90---Close-17532.05
on 1.10.2021.
Support:17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.
Resistance: -17576.10/17630/17700/17756/17792.95/17920/17947.75/17971/18027/18081/18548/19303.70/19575/20390.09.
(Bold and underlined
figures are most important)
After making double top on 27.9.2021 it has been falling for the
last 4 trading sessions , it was
already into very short term correction mode but today it slipped into short
term correction mode, furthermore it has broken its short term moving averages
after a long time and also marginally below one of its important long term
average which is a very weak sign. Please note that if it does not bounce back
and closes above 17700 (figure may
change) in next 2-3 trading
session then down move may continue. However even if it closes above 17577(figure may change) and sustain on
the closing basis then there is a chance that it could stage a relief rally and
may try to come out of corrective mode also else down move should continue. Moving
down further from here its other critical support or possible bounce back
points will be at 17526---17373---17326(figures may change),it
is already into short term correction mode
and sustained break below 17326
on the closing basis could push it into deep short term corrective mode which
could drag it down further with an accelerated pace. Please note that it could
come out of the corrective mode if it closes above 17801 and sustain and if it moves above 17849 and sustain on the closing basis then it could retest its
all-time high of 17947.65 or may go
beyond it also. Moving up its target points or stiff resistance points could be
at 17576.75---17700---17784---17792.95---17801---17823.40---17856---17920---17947.65---17971---18027---18062---18081.50---18548(figures
may change).
It is important to mention here that its
long term technical setup is still good for the
uptrend to continue. It is into short term corrective mode , furthermore
certain important technical indicators are giving weak signal on the daily
chart which may drag it down , so one has to be cautious and alert in the long
trade at least till the indicators turn positive or it closes above 17700(figure may change) and sustain on
the closing basis. I once again repeat that if it does not recover fast and
move above its critical points mentioned above in next 2-3 trading sessions then down move should continue.
In view of the above observation, it
is into corrective mode therefore safe traders should avoid long trade till the
fall is arrested or it gives visible indication of correction completion. It would be safe to try long trade only
once it closes above 17700(this figure can change). However, aggressive
traders can try long trade if it moves above 17577 and maintain for some time or buy on decline near 17450 and then near 17326 but not below it.
Please note that long trade in a corrective market could be a risky affair.
It is in the long term uptrend but in corrective mode now and one never know
how this on-going correction will culminate, therefore short
trade can also be attempted on the rise and at appropriate point 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 on decline near 17450 and then near 17326 but not below
it with a stop loss of 17400 or 17270. It is for the aggressive traders and
could be a highly risky trade.
Or
Buy if it moves above 17577 and maintain for some time with a
stop loss of 17520. It is for the aggressive traders and could be a risky trade.
2. Sell on the rise near or
within the range of 17680---17700 with a stop loss of 17740. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17450
and maintain for some with a stop loss of 17550. 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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