Open—37407.40---High—37988.60---Low—37408.20---Close—37463.40 on
13.4.2022.
Support:37346.80/37319.05/37264.45/36827.60/36651.85/36373.60/36298.35/36151.95/35696/35585.20/35481.70/35327.90/35016.30/34817.50/34233/34018.45.
Resistance:37581.05/37708.75/37891.90/37988.60/38112.75/38377.25/38461.70/38765.85/38855.55/39197.20/39424.85/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
The week under review from 11.4.2020—13.4.2022 was a truncated week and it closed near the low of the week but still well above its critical points of 36827.60---36373.60---36298.35---35761.13---35585.20---35481.70 which is a positive sign and as long as it holds these points there is a possibility that it may resume the steady up move. But sustained break below any of these points could be concerning and finally sustained break below 35481.70 could put the long term uptrend in the potential danger. The technical setup looks o.k. as of now, therefore if it holds the above critical points it is likely to move up, moving up from here it will face stiff resistance at 37971---38134---38765.85---38855.50---39197---39424.85---39547---39895, please note that the rally may end at any of the above stated points or earlier also, but if it moves above 37709 on the closing basis then it may get the required strength and it may pick up momentum, however it seems that the up journey from here may not be that smooth as of now. Lastly and most importantly if it moves above 39895 and sustain on the closing basis then it is likely that it could retest its all-time high of 41829.60 or may move higher.
It is
into very short term corrective mode and can come out of it if it moves above 37881 and sustain on the closing basis
but if it moves below 37205.77 and
sustain then it could get into deep corrective mode which could be concerning
and can drag it down. But the technical indicators are still positive on the
daily chart and showing improvement on the weekly chart and some has turned
positive also, which indicates that it may continue the up move, off course
with intermittent correction and provided it holds the above mentioned critical
points. The long term uptrend is still intact but it is in very short term
correction mode now.
In view
of the above observation for safe traders long trade can be tried if it moves
above 37881 and maintain for some
time or if it holds 37265 levels for
some time with a self defined stop loss. But the aggressive traders can try
long trade on decline also near the critical points as mentioned above with
self defined stop losses, but long trade below 37205.77 could be a risky affair which may be kept in mind. Please
trail your stop loss in case of profitable trade to avoid losses. As it is in
the corrective mode therefore one should be very vigilant and cautious in the
long trade. Since it is in corrective mode, therefore short trade can also be
tried on the reasonable rise at appropriate points or on the price breakdown
with self defined stop losses for a possible intraday corrective gain. The
short term bias is negative now.
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.