CNX-Bank
Index closed at 15982.50on 5-9-2014
Range for
the week ended 5-9-14 was :-16208.55---15790.25
SUPPORT: -15973.35
/ 15790.25 / 15742.05 / 15740.40 / 15626.90 / 15592.80 / 15503.40 / 15448.90 .
RESISTANCE: - 16208.55 / 16265 / 16330 / 16413 /
16580—16720
(Figures
in bold are important)
Index opened on a firm note for the
week under review and made a new all time high of 16208.55 on 3-9-14 and made a low of 15790.25 before closing the
week at 15982.50.It did not showed the required strength and the last three
days move indicate that correction may set in,if it does then the possible
correction completion points are 16029 / 15918 / 15828 / 15739 / 15638 from
where index can bounce back Kindly note that if it breaks the 15638 point and
stays then there could be potential threat of it going down further and sharply
too, as of now chance of which are looking weak, kindly note that in bull
market correction don’t last for long. therefore it is still buy on dip market
but with caution. Kindly note that going up it will face good resistance at
16208.55 / 16263 &16330.
TECHNICAL VIEW
1.
ON DAILY CHART:-
It looks ok on the daily chart and as of now it is buy on dip, although it is
just above the upper band of short term DMA range of 15950—15530(it changes
every day) for 8-9-14 but since it is very close to it, therefore be alert in long trade and avoid fresh long
call if it starts trading below 15950 and get out of the long trade if closes
below 15530 and stays. It has made recent bottom of 15448.90 so avoid long call
below this point for sure.
2ON WEEKLY CHART:- It
is ok on the chart . Furthermore it is way above the upper band of the short term DMA range
which is between 15451--14730(for the next week) starting from-8-9-14. If it
moves above 16208.55 and stays then it could move up to 16313 / 16418 &
16522 during the week similarly if it stays below 15982.50 then it could move
down to 15877 / 15773 & 15664 level..
. 3. ON MONTHLY CHART:- It is ok
on the chart but it has been
continuously moving up for the last seven months and gave a stupendous rise of
6029.35 points. It rose from 9940 in Feb-14 to 15973.35 in August-14, furthermore
it made new high all time high of 16208.55 on 3-9-14and now at 15982.50 therefore
correction on the monthly basis looks imminent in the month of Septemper-14 ,it
is showing some weakness and correction may creep in any time but no distinct
sign of it as yet , therefore, I suggest that one should be cautious in long
trade. If it stays above 15973.35 it can
move up to 16605 level during the month of September-14 similarly if it stays
below 15790.25 it can move down to 15158 chances of which are looking slim as
of now, therefore be cautious in long trade.
REMARK:- Long term trend is still up,
therefore I would suggest to adopt buy
on dip strategy at appropriate level with proper stop loss. Please be alert in
long call below 15950 and avoid fresh long call below this point ,one can try
long call at good support levels(see support and resistance point) with an
adequate stop loss..
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
is of spot market
Contact me for strategic guidance to enter
and exit the trade
