CNX-NIFTY
Open—17338.75--High—17355.40—Low—16985.70---Close-17026.45
on 26.11.2021.
Support:16701.85/16565/16376.05/16349.45/16162.55/15962.25---15895.75/15635.95/15632.75/15578.55/15513.45/15450.90.
Resistance: -17055/17216.10/17254.20/17326.10/17436.50/17452.90/17613.15/17757.95/17792.95/17798.20/17884.60/17947.65/17968.50/18012.20/18041.95/18112.60/s18342.05/18604.50.
(Bold and underlined
figures are most important)
It opened with a gap down but covered
the gap immediately and then sharply plunged down and finally closed with a whopping
loss of 509.80 points. It has slipped into medium term
correction mode today as it has decisively broken its threshold point of 17312.85 which is a very weak sign.
Furthermore it is below all its short term moving averages on the daily and the
weekly chart, below its all medium term moving averages on the daily chart 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 at least some
of the key points in shortest possible time then the fall may continue. Please
note that looking at today’s colossal fall sharp bounce back is very less
likely in coming days/weeks. Moving down further its other important support
points are at 16823---16701---16565.60(figure
may change), please note that sustained break below 16823 will put the long term uptrend in potential danger. Similarly
moving up it will face stiff resistance from its critical points at 17254.20----17326.10---17452.90---17613---17792.95---17947.65---17981---18067---18145---18160---18260---18349(figures
may change) and to regain the steady up momentum again it has to move above
this range and sustain, but looking at the last few days price movement and
particularly today’s fall chances of crossing this huge resistance range is
very slim or say negligible at this point of time.
It is important to mention here that
it is way below its correction completion point of 17313---17875 & 18285.80, its pullback threshold points are at 17131---17275--17306 & 17368 (figure
may change) now it is below all these points, please note that if it closes
above 17131 and sustain then it may
give a very weak pullback up move, if it closes above 17275 & 17306 and sustain then it may get feeble strength and
if it closes above 17368 and sustain
then chances are that it may give
slightly better and moderately strong pullback move mind you. But 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 technical setup is still o.k. for the
uptrend to continue as long as it holds 16823(figure
will change every day). But the way it has fallen today it is very near the
striking range, which is a bad sign, furthermore it has slipped into medium
term correction mode today and it is below all its 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
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 now and also below its important pullback threshold point
of 17368 therefore for safe traders
long trade should be avoided and can only be tried if it closes above 17368 and sustain for the pullback
gains. However, aggressive traders can try long trade if it sustain above
today’s close of 17026.45 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. It is still in the long term
uptrend but now in medium term correction mode, therefore short
trade can 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 sustains above today’s close of 17026.45 for some
time with a stop loss of 16980. It is for the aggressive traders and could be a
highly risky trade.
2. Sell on the rise near or
within the range of 17250---17275 with a stop loss of 17320. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 16980
with a stop loss of 17050. 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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