CNX-NIFTY
Open—16128.20--High—16140—Low—15950.15---Close-15966.65
on 13.7.2022.
Support:15962.25—914---903-895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:15986.42/15991/16133.57/16162.55/16172.60/16203.25/16275.50/16376.05/16410.20/16472/16490//16565/16695/16701.55/16752.40/16793.85/16824.70---833---837/16888.70/16891.70/16894/17006--003.
(Bold and underlined
figures are most important)
The correction continued for
the 2nd day and it closed with a loss of 91.65 points.
Today it slipped below its critical support range of 16017---15991---15986.42,
it is below its long term correction threshold point of 15986.42 and
in for the short term correction also as far as the up rally which started from 15183
is concerned, which is concerning. Therefore till it moves above the range of 15986.42---15991---16017
at least and sustain on the closing basis, chances of up move looks slim. Please
note that one important technical indicator has turned negative but the other
three are still positive, furthermore it has not yet broken its recent bottom
on the line and bar chart as yet, therefore chance of bounce back is still
there although it is making lower high and lower lows for the last three days
which is a bad sign. It is therefore suggested to avoid long trade till the signs
of continuation of the up move emerge.
Since it is in long and short
term correction mode therefore safe traders should avoid long trade till it
closes above 16221 and sustain. However aggressive traders can try long
trade for pullback gains if it moves above 16017 and maintains for some with
a stop loss of 15940 for a target
of 16100---16140 or on decline near 15810 but not below this with
a stop loss of 15740. It is important to mention here that long trade in
a corrective market could be a risky affair therefore one should be extremely
cautious and careful in the long trade at this point of time. Since it is in
corrective mode therefore short trade should be attempted on the rise near or
within the range of 15986.42---15991---16017 with a stop loss of 16060
for a target of 15893---15858---15803, or try short trade on
the price breakdown i.e. sell below 15940 with a stop loss of 16030.
It could be a risky trade but worth
trying for intraday gains in a corrective market. The short term bias is still
up but it is in corrective mode, medium and long term bias is bearish 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.