CNX-NIFTY
Open—17550.05--High—17600.60—Low—17354---Close-17415.05
on 24.11.2021.
Support: 17326.10/17254.20/17055/16701.85.
Resistance: -17452.90/17576/17613.15/17688.50/17763/17792.95/17884.60/17947.65/17968.50/18012.20/18041.95/18069.25/18210.15/18342.05/18604.50.
(Bold and underlined
figures are most important)
It opened on a positive note and went
up further but could not sustain at the upper level and slipped down and
finally closed with a loss of 88.30 points. It is still into deep short term correction mode
and break below 17312.85 will push
it into medium term correction mode, which may please be noted. It is still below
its short term moving averages on the daily and below some averages on the
weekly chart also, almost below all of the medium term moving averages and also
below some of its long term parameters on the daily chart, which is a very weak
indication and if it does not bounce back sharply and move above some of the
key points in shortest possible time then the fall may continue. Moving down
further its other important support points are at 17326.10---17254.20---16797---16701---16565.60(figure
may change), please note that sustained break below 16797 will put the long term uptrend in potential danger. Similarly
moving up it will face stiff resistance from its critical points at 17613---17792.95---17947.65---17968---18052---18131---18149---18248---18337(figures
may change) and to regain the steady up momentum again it has to move above
this range and sustain, but looking at last few days of price movement chances of
crossing this range is very slim at this point of time.
It is important to mention here that
it is way below its correction completion point of 17875 & 18285.80, its pullback threshold points are at 17451--17482 & 17544 (figure may change)
and after staying above 2 points
for a day it slipped below all the points today which is a very weak sign and
if sustains below these points it may have an accelerated fall in coming
days/weeks. The overall short term technical setup is very weak as of now mind
you.
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 technical setup is still o.k. for the
uptrend to continue as long as it holds 16797(figure
will change every day). It is into deep short term correction mode and
making lower top & bottom on the line and the bar chart, it is below its all
critical support points also as mentioned above therefore further fall cannot
be ruled out if it remains below it. Furthermore please note that few important
technical indicators are also weak on the daily and weekly chart and indicating
that it could seek much lower levels, therefore it seems that it may witness an
accelerated fall in coming days/weeks, if the technical indicators or the price
pattern does not improve fast. Since it is in deep 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 deep
short term correction mode and also below all its pullback threshold point of therefore for safe traders long trade should
be avoided and can only be tried if it closes above 17544 and sustain for the pullback gains. However, aggressive traders
can try long trade if it moves above 17453
and maintain for some time or can try long trade on decline near 17216 but not below it. 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, therefore it is suggested to avoid long trade now. It is still in the long term uptrend but now
in deep correction mode, therefore short trade can 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 if it moves above 17453 and maintain for some time with a
stop loss of 17400. It is for the aggressive traders and could be a highly risky
trade.
Or
Buy on decline at appropriate points or near 17216 for some time
with a stop loss of 17170. It is for the aggressive traders and could be a
highly risky trade.
2. Sell on the rise near or
within the range of 17510---17530 with a stop loss of 17580. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it remains below 17453
with a stop loss of 17510. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves below 17410
with a stop loss of 17465. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves below 17350
with a stop loss of 17420. It could be a 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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