Open—36224.45---High—36347.85--Low—35327.90---Close—35976.45 on 29.11.2021.
Support:35810.90/35531.35/35327.90/34817.50/34115/33908.
Resistance: -35977.97/36151.95/36525.95/36647/36655.40/36876.35/37140/37232.20/37708.75/37891/38112.75/38377.25/38426/38932.45/39117.15/39292.80/40011.15/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important)
It opened on a positive note and then
plunged down sharply but later recovered smartly but finally closed with a
meager loss of 49.05
points. It is still into medium term correction mode and break below 35761.25 will push it into long term
correction mode, it did break this level intraday today but managed to close
above, however it is very concerning which may please be noted. It is below its
short term moving averages on the daily and the weekly chart, below all its
medium term moving averages and also below some of its long term important parameters
on the daily chart, which is a very weak indication and if it does not bounce
back sharply and move above at least some of the key points in shortest
possible time then the fall may continue. Please note that looking at last few
day price movement sharp bounce back is very less likely to happen in coming
days/weeks. Moving down further its
other important support points are at 35904.10---35359.25---34999---34817.50---34115---33908
(figure may change), please note that
it is decisively below its long term uptrend upholding point of 36832(figure will change every day) which is very concerning and if it does not
bounce back above it continuation of the long term uptrend is in question,
furthermore sustained break below 35002(figure will change every day) may
end the long term up trend and it may get into bear market. Similarly moving up
it will face stiff resistance from its critical points at 36151---36525.95---36876.35---37477---37591---37871---37984---38243---38473---40415---40727---41032
(figures may change) and to regain the steady up momentum again it
has to move above this range and sustain, chances of which is pretty weak at
this point of time.
It is important to mention here that
it is way below its correction completion point of 38796---39959.70 & 40489,
its pullback threshold points are at 35933---36222---36468---36862.50
(figure may change) it is just above the first point of 35933 now, please note that if it
sustain above it then it may give a lame pullback up move, if it closes above 36222 & 36468 and sustain then it
may get feeble strength in the up move and if it closes above 36862.50 and sustain then chances are that it may give slightly
better and moderately strong pullback move mind you. Therefore the important and
key pullback threshold point is 36862.50
and uptrend upholding point is 36832
therefore it seems that below these levels any up move would be very short
lived one. The overall short term technical setup is terribly weak as of now
and the potential direction is down now.
It is
important to mention here that pullback rallies are treacherous in nature and
can end abruptly, it is therefore suggested that one should be extremely alert
and cautious in the long trade initiated for pullback gains.
It is important to mention here that its
long term uptrend is in jeopardy as it
has decisively broken its uptrend upholding point of 36832(figure will change every day) on 26.11.2021,
which is very concerning and indicates further fall ahead. Furthermore I once
again repeat that sustained break below 35002
may end the long term uptrend. It is into medium term correction mode, it is
below its all critical support points also as mentioned above which is all the
more bad sign. Furthermore, please note that few important technical indicators
are also weak on the daily and weekly chart which indicates that it could seek
much lower levels in coming days/weeks
(it has already been making new low for the last couple of days) with in
between short relief rallies; therefore it seems that the fall may continue if
the technical indicators or the price pattern does not improve fast. Since it
is in medium term corrective mode therefore sell on the rise strategy should be
adopted till visible sign of correction completion emerges. The, short
term bias is hugely weak and negative.
In view of the above, it is into
medium term correction mode and also below its important pullback threshold
point of 36862.50, therefore for
safe traders long trade should be avoided and can only be tried if it closes
above 36862.50 and sustain for the
pullback gains. However, aggressive traders can try long trade if it holds 35933 levels for some time, else avoid.
I strongly caution here that long trade in a corrective mode could be a highly
risky affair; therefore one should be extremely cautious in the long trade at
this point of time, it is therefore suggested to avoid long trade now. Please note that its long term uptrend is in
question now, therefore short trade should be attempted on
the rise at appropriate point or can be tried on the price breakdown for taking
advantage of the down move 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 holds 35933 levels for some time with a stop loss
of 35890. It is for the aggressive traders and could be a highly risky trade.
2. Sell on the rise near or
within the range of 36470--36550 with a stop loss of 36650. It could be a
highly risky trade but worth trying for intraday gains.
Or
Sell if it moves below 35890
with a stop loss of 36040. It could be a risky trade but worth trying for
intraday gains.
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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