Open-32275.15--High-32441.50--Low—31650.90—Close-31811.75
on 18.1.2021
Support:31725.85/31660.75/31649.45/31510.25/31297.30/31264.05/30945.20/30893.65/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:32298.05/32465.45/32613.10/32718.95/33043/33327/33681.
(Bold and underlined figures are most
important)
As it failed to close above its previous all-time high
of 32613.10 therefore as envisaged
it corrected sharply which is a weak sign. It is way above its benchmark point
of 29314. Its other key points are placed
at 32288—31835.79----30570---29813---28801.71(figures
can change) but it is below its first two key points of 32288 & 31835.79 therefore it has
slipped into very short term correction mode which can last for 3-4 days, sustained break below 30570 on the closing basis will push it
into real short term correction mode which can last slightly longer, sustained
break below 29813 will push it into
medium term correction mode which can last even longer and most importantly
sustained break below 28801.71 on
the closing basis can push it into long term correction mode and will
potentially threaten the uptrend also, which may please be noted.
The technical setup is still looking o.k. but it has broken its certain short term moving averages, furthermore negative divergence has also surfaced and most importantly it has broken its recent bottom on the line chart and all this has happened after a long time which makes it even weaker. Please note that if it does not bounce back above its averages shortly then negative divergence can come into play and correction could deepen and it can seek much lower levels in coming days, which may please be noted. As it has broken its first two key points, so it has already slipped into very short term correction mode and last three days fall gives an indication that if it does not bounce back sharply in next 3-4 trading session then down move is sure to accelerate. Please note that its most critical points for the year 2021 are 32613.10—32465.45 & 31264.05 and it is way below its first two points therefore last hope is 31264.05 levels if it break this mark and sustain on the closing basis then it will be an indication that could slip into deep correction which may last longer. Since the correction is on therefore it is suggested to be careful and cautious in the long trade but it would be better if it is avoided till the correction completion looks visible. Please note that it can stage a pullback only if it closes and sustain above 31902 as of now, else down move will continue.
Moving down
its critical support points at 31725.85---31510.25---30945.20---30893.65---30570---30197.85---29813---29314---28800.71.
Moving up its critical resistance points
at 31835.79---31998---32288---32465.45---32613.10---32718.95---33043---33327---33681---34130---34323---35440---37700.
In view of the above observation for safe traders long trade should be
avoided till clarity on correction completion emerges. However, aggressive
traders can try long trade on decline at appropriate points but not below 31264 or if it moves and sustain above 31902 for some time for taking
advantage of the possible pullback rally. In this context please note that
pullback rallies are treacherous in nature and can end abruptly trapping the
traders unaware so be extra careful in the long trade. It is advised to avoid
long trade for now. Since it gotten into
correction mode therefore short trade should be attempted on the rise or on the
price breakdown for taking advantage of the down move.
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.
TRADING STRATEGY
1. Buy if it moves and maintains above 31902 for some time with
a stop loss of 31800. It is for aggressive traders and could be a risky trade.
Or
Buy on decline at appropriate points or near 31264 but not below
it with a stop loss of 31160.It is for aggressive traders and could be a risky
trade.
2. Sell if it moves and maintains below 31725 for some
time with a stop loss of 31815.It could be a risky trade but worth trying.
Or
Sell on the rise near or
within the range of 32300---32450 with a stop loss of 32550.It could be a risky
trade but worth trying.
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.
