CNX-NIFTY
Open—17698.15--High—17842.75—Low—17600.55---Close-17784.35
on 8.4.2022.
Support:17704/17639/17613/17600/17559/17452.90/17387.15/17354.05/17326/17216/17043/17003.90.
Resistance: -17795/17948/18018/18152/18210/18350/18604.45/18862/19402/19725/20390/20417.
(Bold and underlined
figures are most important)
During the current week from 4.4.2020—8.4.2022
under review it did whip saw around 17795 and finally ended the week
shade below it, however it is still looking strong as it is well above its
critical points of 17354.05---17387.15---17436.90---17464.75---17559.80,
so as long as it holds these points there is a possibility that the up rally may
gain strength. But sustained break below any of these points could be concerning
and finally sustained break below the range of 17224—17000 could end the
on-going up move for a while. Furthermore as I mentioned in my last post that
it is in the process of making Inverse Head & Shoulder Pattern, which is a bullish
pattern and its neckline is at 17795 it did closed above it for 3 days
during the week but then moved down and closed shade lower at the end of the
week. But if it moves above it and sustain on the closing basis for at least 4
days then the pattern will come into play and then it could hit a maximum up
target of 19850—20000, but moving up to the target range it will face
stiff resistance on the way at 17815---17875---17948---18018---18115---18152---18210---18350---18475---18604.45---18862---19402---19725,
please note that the rally may end at any of the above stated points or
earlier also, but if it moves above 18018 and sustain on the closing
basis then it is likely that it could
retest its all-time high of 18604.45 or may move higher and if it sustains
above 18604.45 then it is very much possible that it could head closer
to the maximum target of the inverse head & shoulder pattern.
The technical
indicators are positive on the daily chart and showing improvement on the
weekly chart and some has turned positive also, which indicates that the
on-going up move may extend and can last for some time, off course with
intermittent correction and provided it holds the above mentioned critical
points. The technical setup looks good and the long term and short term bias is
positive as of now.
In view
of the above observation long trade can be tried if it moves above 17795 or 17843 and maintain for some time with a stop loss of 17700 and 17770 respectively or buy on decline at appropriate support points
with self defined stop losses but not below 17600 with a stop loss of 17540
and then near the critical points as mentioned above but not below 17354 with self defined stop losses.
Please note that safe traders should avoid long trade below 17795. Please trail your stop loss in case of
profitable trade to avoid losses. As it is in the up move so it is buy on dip
market as of now, therefore short trade should be avoided in general, but it can
be tried on the reasonable rise at appropriate points or on the price breakdown
with self defined stop losses for a possible intraday corrective gains. The
bias is positive 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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