Open—18500.10--High—18543.15—Low—18445.30---Close-18477.05
on 18.10.2021.
Support:18350.75/18254/18197.80/18081/17971/17947.65/17920/17840/17792.95/7756/17700/17613/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.
Resistance: -18550/18778/19303.70/19575/20390.09/20656.
(Bold and underlined
figures are most important)
It continued it’s up journey for the 7th straight day today and
closed with a gain of 138.50 points. It is showing extraordinary
strength in the up move despite 7
days straight rise and 3 up gaps in
a row, the gaps are still not filled which is slightly concerning but the price
pattern is o.k. as of now, however in wake of unfilled gap and straight rise it
looks vulnerable for correction now, therefore one should be alert and cautious
in the long trade for the next 3-4
trading sessions because chances are that it could correct sharply. However as
long as it holds the range of 18285.85---18256---18239 on the closing basis then
the up move should continue with intermittent correction. It is in strong
uptrend now. Moving up from here its upside target point or stiff resistance
points could be at 18550---18778(figures may change) and it could
react from any of these points and then may resume the uptrend again or may
break down also which may please be noted. But it is important to note that
sustained close above 18778 will open up the upside range to 20390---20656, which
may please be noted. Similarly moving down
its critical support points could be at 18285.85---18256---18239---18031.70---17981---17813---17452(figure
may change), it may bounce back from any of these points, break below the
range of 18285.85---18256---18239,
will push it into very short term correction mode, break below 18031.70---17981 & 17813 will
weaken it further and push it into deep short
term correction mode, sustained break below 17452 on the closing basis will indicate that the on-going
uptrend may be in jeopardy.
It is important to mention here that its
long term technical setup is strong and good for the
uptrend to continue. The short term bias is also positive as of now.
Furthermore except for one other important technical indicator have also turned
positive which may accelerate the up momentum in coming days. I would like to
caution here that although it is on a very sound technical footing as of now
and further rise is indicated, but with every rise in it the risk element is
also increasing, so be alert and careful in your long commitments henceforth.
In view of the above , long trade can
be tried if it moves above 18544 and
maintain for some time or buy on decline at appropriate points or near 18285 but not below it. In light of
above observation correction looks imminent and may happen any time soon,
therefore one should be extremely cautious in the long trade at this point of
time. It is in the long term uptrend but
correction always happens, 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. Please be extra alert in the short
trade because it is in strong uptrend.
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 18544 and maintain for some time say
one hour with a stop loss of 18460. It is for both the traders.
Or
Buy on decline at appropriate point or near 18285 but not below
it with a stop loss of 18225. It is for both the traders and could be a risky
trade.
2. Sell near if it does not
move above 18544 with a stop loss of 18600. It could be a highly risky trade but
worth trying for intraday gain.
Or
Sell if it moves below 18445
and maintain for some with a stop loss of 18510. 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.