Open—33925.95---High—34002.20---Low—33007.90---Close—33121.35 on
13.5.2022.
Support: 33007.90/32415.25/32376.50/32155.55/31906.55/30891/30405/29687.20.
Resistance:33908.95/34018.45/34115.20/34233/34817.50/35016/35327.90/35481.70/35511.40/35585.20/35696/35761.13/35926.30/36151.95/36298.35/36373.60/37264.45/37319.05/37346.80/36651.85/36827.60/37581.05/37708.75/37891.90/37988.60/38112.75/38377.25/38461.70/38765.85/38855.55/39197.20/39424.85/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
The week under review from 9.5.2020—13.5.2022
was very volatile and it had wild movement, but as anticipated eventually it
moved down and closed near the low of the week, breaking its all important
points which is a very bad sign. The long term uptrend also is in deep trouble
and danger and it may give a ray of hope for moving up only, if it moves above the
range of 35481.70----35762 and sustain on the closing basis, else down
move will continue, please note that as it is way below the above range now, so
the chances of crossing this range looks very bleak at this point of time.
Furthermore its bear market threshold point is 33464 and it has
closed below it, therefore it looks that the down move should continue, however
moving down it will find support at 32613---32155---32133---30405---29687.70
and if it hold the range of 32613---32133 then it may stage a relief
rally but that may not last until it moves above the range of 35481.70----35762
and sustain on the closing basis. It is
important to mention here that sustained break below 32133 will further
push it down and break below 30405 will potentially end the long term
uptrend and finally sustained break below 29687.70 will accelerate the fall and can drag
it down much lower.
It slipped into long term
corrective mode and also into bear market territory this week and it can come
out of it, if it moves above 33464 & 35762. Furthermore almost all
important technical indicators have also turned weak on the daily, weekly and monthly
chart, which is highly concerning. The indicators are exhibiting tremendous
weakness as of now, therefore further fall looks inevitable and it may drag it
down to 30550 levels or below in coming days. Please note if it moves
above 34439 (this figure will be scaled down if it breaches 32155.35 mark)
levels and sustain then there is a
possibility of a bounce back else down move will continue with in between short
relief rallies, so be alert and careful particularly in the long trade. The
long term uptrend is in deep trouble and short & medium term trend is also
deeply down as of now.
In view
of the above observation safe traders should avoid long trade till correction
completion sign emerges. However, aggressive traders can try long trade near or
within the range 32613---32133 and
then near 30500 but not below it
with a stop loss of 31800 and 30250 respectively. Please trail your
stop loss in case of profitable trade to avoid losses. Since it is in long term
corrective mode long trade could be a risky affair, therefore one should be
very vigilant and cautious in the long trade. It is suggested to avoid long
trade now and adopt sell on the rise strategy at appropriate points or sell on
the price breakdown with self defined stop losses for a possible intraday corrective
gain till it gets out of corrective mode. The bias is hugely bearish 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.
