Open—35901.70---High—36684.65---Low—35768.20---Close—36430.75 on 25.2.2022.
Support:36651/36375/36151.95/35585.20/35481.70/34991.35/34817.50/34115/34018.45/33908.95.
Resistance:36651/36876.35/37140/37232.30/37319.05/37581.05/37708.75/37891.90/38112.75/38377.25/38461.70/38855.55/39197.20/39424.85/40160.20/41367.25/41829.60
(Bold and underlined
figures are most important).
As you are already aware that it was
in a corrective mode and still it is in (see my last post) and it reacted
sharply on 24.2.2022 because of
Russia and Ukraine war news breaking all the critical points on the downside
but it bounced back the next day and managed to close above its important &
critical point of 35866(figure will
change every day + or- 5-7 points). Please note that the long term uptrend
is already threatened but if it moves and sustained below 35866 on the closing basis then long term uptrend will be in real
danger. Furthermore moving down its last critical support points could be at 35866---35761.25---35585.20---35481.70,
break below 35866 will further
weaken it and sustained break below 35761.25
on the closing basis will push it into long term correction mode which could
last few weeks or months and sustained break below 35481.70 will accelerate the fall. Therefore the range of 35866---35481 could be considered as
important or value range for now. Similarly moving up its critical resistance
points would be at 36685---37002---37208---37600---37731---37924---38379—38462---38538---38846---39424---39486---40267,
please note that as long as it holds 35866
on the closing basis then the chances are that it could give a reasonable to
decent pullback up move but please keep in mind that pullback up move can
fizzle out at any of the above mentioned points also but if it moves and
sustain above 38000(figure will change
every day) then possibly it would show some strength for the up momentum to
continue, else down move will continue with in between short relief rallies. It
is important to mention here that even if it moves above 38000 it will encounter very stiff resistance in the range of 38100---40300(figure will every day) so
up journey looks tough at this point of time
It is already into medium term
corrective mode now and some important technical indicators are also weak on
the daily and weekly chart which indicates that fall further looks imminent
from here, if price do not improve sharply and move above at least some of its
critical and important points. However as long as it holds the range of 35866---35481 the hope of bouncing back
from this range would always be there. But the overall technical setup is weak,
therefore further fall cannot be ruled out as of now.
In view of the above observation for
safe traders it is suggested to avoid long trade completely for now, however
aggressive traders can try long trade on decline near or within the range of 35866---35481 with a stop loss of 35200 for a possible pullback up move
but please note that pullback rallies are treacherous in nature and could
fizzle out abruptly also, so be alert and careful in the long trade, it is
suggested to avoid long trade in corrective mode. As of now it is suggested to
adopt sell on the rise strategy or sell on the price breakdown till it gives
visible indication of correction completion.
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.
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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Thank you for sharing your views.