Open—34526.10---High—35097.75---Low—34094.10---Close—34407.80 on
4.3.2022.
Support:34376/34357/34233/34094/34018/33908.95/33273.95/32842.30/32415.25/32141.55/32115/31906.55/31650/30945—932/30893.65/30405/29687.70/28976.
Resistance:34410/34650.75/34751.25/34859/34991.35/35327.80/35576.95/35810.90/35985.25/36151.95/36327.05/36375/36497/36615/36651/36876.35/37140/37232.30/37319.05/37581.05/37708.75/37891.90/38112.75/38377.25/38461.70/38855.55/39197.20/39424.85.
(Bold and underlined
figures are most important).
The technical setup has drastically weakened during the week under review i.e. 28.2.2022 to 4.3.2022 and it has ended near the lower end of the week which is a bad sign. It has slipped into long term correction mode also and way below its, long term moving averages and other long term key points, which is highly concerning and indicate that long term uptrend may have ended for now, furthermore the on-going war between Russia and Ukraine is also taking a toll on the entire world‘s financial market, therefore further fall looks imminent till this war crisis ends. However in between short relief rallies could be there. Moving down it may find good support at 34018---33900---33630---33530---33000---32900---32280---32170---32000---31900---31630---31360---31225---30550---30000 and may bounce back from any of these points but that up move may not be lasting till it moves above it key points of 35481.70---35585.20---35761.25---35862(this figure may scale downward if it breaks 34018) and sustain on the closing basis.
It is into long term corrective mode
and if it remains below its threshold point of 35761.25 correction may last for few weeks to few months also.
Furthermore some important technical indicators are also weak on the daily and
weekly chart which indicates that fall further looks inevitable from here, if
price do not improve sharply and move above at least the range of 35481.70---35862 and sustain on the
closing basis. The overall technical setup is terribly weak therefore the bias
is hugely bearish 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 34090---33900 with a stop loss of 33800 or near other support points
mentioned above with self defined stop losses 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.