CNX-NIFTY
Open—17276--High—17298.15—Low—16966.45---Close-16985.20
on 17.12.2021.
Support:16891.70/16782.40/16701.85/16565/16376.05/16349.45/16162.55/15962.25---15895.75/15635.95/15632.75/15578.55/15513.45/15450.90.
Resistance: -17055/17216.10/17254.20/17326.10/17436.50/17452.90/17489.80/17543.25/17600.60/17613.15/
17639.50/17757.95/17792.95/17798.20/17884.60/17947.65/17968.50/18012.20/18041.95/18112.60/18342.05/18604.50.
(Bold and underlined
figures are most important)
It hit a high of 17639.50 and low of 16966.45
during the week ended on 17.12.2021
and closed near the low of the week with a loss of 263.20 points on the last day of the
week, closing near the low of the week is a pretty weak sign. Furthermore it
has slipped into medium term correction mode as it has decisively broken its
threshold point of 17312.82, it has
slipped below its important pullback
threshold point of 17212.40 and most
importantly it has moved below its long term uptrend upholding threshold point
of 16993(figure will change for the next
day), all these are very weak indication and its long term uptrend is in
question now and if it remains below these critical points it may be heading
for moderate to big fall in coming days. Moving down its important support
range would be 16956---16750(figure
may change for the next day) and then 16380---16150---15986.42(figure may change for the
next day), please note that it may stage a bounce back from these range but
sustained break below 16150 will put
the long term uptrend in real danger and sustained break below 15986.42 will push into long term
correction mode and may put an end to the long term uptrend for some time which
should be kept in the back of the mind. To keep the hope of long term uptrend
intact or alive it has to maintain above these points on the closing basis 16150---15986.42(figure may change for the
next day) but it may get some strength or chance of getting back some up
momentum only if sustains above 16993(figure
will change for the next day) on the closing basis. Therefore the range of 16150---15986.42(figure may change for the
next day) is the last very critical support range and finally the benchmark
or threshold point of getting into confirmed bear market is 14883.56.
Similarly moving up from here it will face stiff resistance in the range of 17350---17453--17640, moving above 17453 will give some strength and sustained close above 17640 may help it to gain up momentum. But looking at last few days price pattern it seems slightly difficult to cross this range in coming days instead chances of moving down looks much greater at this point of time.
It is into medium term correction
mode now, it is below its short term moving averages on the daily and weekly
chart, it is also below its medium term moving averages on the daily chart, and
way below some of its long term parameters and most importantly below its
critical points as mentioned above, all together these are very weak indication
and pointing towards further fall ahead in coming days, provided it remains
below its critical points. But please note that few
important technical indicators which were weak on the daily and weekly chart
for some time, but some indicators are still giving positive indication on the
daily chart but price pattern is not supporting which is not a good sign,
therefore if it does not bounce back above its key price levels in the next few
days then down move will continue with in between short relief rallies. The short
and medium term trend has turned weak again and long term uptrend is also in
question now therefore overall bias looks tremendously weak as of now.
In view of the above, it slipped into
medium term correction mode now and knocking on to disturb long term uptrend, therefore for safe traders long trade
should be avoided till clarity on correction completion emerges. However
aggressive can try long trade on decline near the lower end of the range of 16956---16750(figure may change) and then
16380---16150---15986.42(figure may
change) but not below 15986.42. I
strongly caution here that long trade in a corrective mode for pullback gains could
be a risky affair; therefore one should be extremely cautious and vigilant in
the long trade at this point of time. It is suggested to avoid long trade for
now. It is still in corrective 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 on decline near the lower end of the range 16956---16750 and then 16380---16150---15986.42 with a stop loss
of 16700 and 15940. It is for the aggressive traders and could be a highly risky
trade.
2. Sell on the rise near or
within the range 17150---17200 with a stop loss of 17250. It could be a risky
trade but worth trying for intraday gain.
Or
Sell if it moves below 16955
with a stop loss of 17020. 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.
No comments:
Post a Comment
Thank you for sharing your views.