Open—35929.55---High—35958.45---Low—35175.10---Close—35275.05 on
3.6.2022.
Support-35175.10/35016.30/34817.50/34751/34658.70/34374.35/34233/34115.20/34018/33908.95/33180.60/33001.75/32415.25/32155.55/32115.50/31906.55/30891/30405.65/29687.20.
Resistance:35481.70/35511.40/35585.20/35696/35761.13/35795---811/35985.25/36083.70/36151.95/36317/36497.35/36615.20/36827.60/36876.35/37232.20/37232.20/37581.05/37708.75/37891.90/37988.60/38112.75/38377.25/38461.70/38765.85/38855.55/39197.20/39424.85/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
Kindly see my last post for 16.5.2022—20.5.2022
where I mentioned that if holds the range of 32613---32133 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 did
rallied from lower range and gave an
upside move of more than 3000 points on the intraday basis in last 15
days but could not sustain above the critical range of 35481.70----35762 , furthermore this week end closing indicates that the up-move is losing steam and
the relief rally may be over if it does not move above the above mentioned critical range and sustain
on the closing basis. It was already in the long term corrective mode and now
the on-going up rally has entered a short term corrective mode as it slipped below
its threshold point of 35356.40 so, it may witness further fall
from here, however as long as it holds the mark of 34438.50(this figure will
be scaled down if it breaches 32155.35 mark) chances of resuming the up
move may be alive. But break below 34438.50 will drag it down further to
33908--33464---33001.75---32700---32415.25—32155.35---32133---30405---29687.70
levels, please note that break below 33464 will push it into bear
market. 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. Therefore this is
an important support range but if it comes near to this range time and again
then it will be a weak indication and then in all probability it will break the
range in coming days, which may please be noted.
It is still into long term
correction mode and the up rally was just a pullback move but now it seems that
the on-going up rally is losing steam as it has started making lower top &
bottom on the line chart now after making higher top & bottom for some time,
therefore this rally may have ended if it fails to move above its critical
range of 35481.70----35762---35827 and then above 36085 and
sustain on the closing basis. Furthermore almost all important technical
indicators are weak on the weekly & monthly chart, which is highly
concerning. However the indicators are positive on the daily chart for some
time hence this rally, but now price is indicating weakness, which is a bad
sign. Overall it indicates weakness; therefore further fall looks very much
likely in coming days provided it does not move above the mentioned points. The
short term trend possibly turned weak now and the long term trend is already in
danger.
In view of the above
observation as momentum is losing the steam, therefore it is suggested that the
safe traders should avoid long trade now and can only try if it sustains above 35827 on the closing basis. However,
aggressive traders can try long trade if it moves above 35630 and maintain for some time with a stop loss of 35460 or on the decline near 35175 and then near or within the range
of 33908--33464---33001.75---32700---32415.25—32155.35---32133 with a self defined stop loss. Please
trail your stop loss in case of profitable trade to avoid losses. Please note
that long trade at this juncture could be a very risky affair, therefore one
should be very vigilant and cautious in the long trade at this point of time.
Since it is showing sign of weakness it is suggested to 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 gives visible signs
of resuming the up move again. The long term bias is still negative
as of 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.