Open—34084.70---High—34361.05---Low—33757---Close—33815.90 on 5.7.2022.
Support:33774.05/33463.55/33273.95/33180.60/33080.45/33001.75/32652.15/32613.10/32415.25/32290.55/32155.35/31906.55/31649.45/31170.55/3801/30405.65/30220/29687.70.
Resistance:33774.05/33908.95/34018.45/34115.20/34147.50/34287/34390.05/34439/34817.50/35016.30/35327.90/35481.70/35511/35585.20/35762/35958.45/36083.70.
(Bold and underlined
figures are most important).
The pullback rally was on for
the last few days and it showed good strength on the up move in the first half
today and hit a intraday high of 34361.05 but could not cross
its critical point of 34439,
but it plunged down sharply in second half and closed near the low of the day,
which is concerning. Please note that if it fails to close above this range in
next 2 trading session then this rally may exhaust here and start
moving down and break below 33440 on the closing basis will weaken it
further and break below 33265 on the closing basis may confirm the end
of the rally and may accelerate the fall. However in case if it crosses its
critical point of 34439 and closes above it and sustain then this rally
may extend. Moving up it will face stiff resistance at 34439---34635---35136---35187---35481.20---35585.20---35762.
But looking at today’s movement a sharp up move is very less likely and
possibly the on-going pullback rally may have ended today. So watch out.
In view of the above
observation, safe traders should avoid long trade till it closes above 34439
and sustain. However the aggressive traders can try long trade if it moves
above 33941 and maintain for some time with a stop loss of 33800
or can buy on decline at appropriate points or near or within the range of 33550---33265 but
not below it with a stop loss of 33050. Please note that it is still in
the long term corrective mode and initiating a long trade for a pullback gains
could be a highly risky affair. It is therefore suggested to be extremely
cautious and vigilant in long trade initiated for pullback gains at this point
of time. I would personally avoid long trade now. Since it is in long term
corrective mode short trade should be attempted on the rise at appropriate
points or on the price breakdown for corrective gains. The short term trend is
positive as of now, but the medium and long term trend is still down.
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.