Open-35114.25--High-35402.45--Low—34641.20--Close-34800.50 on 9.6.2021
Support:34658.70/34430/34360/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.
Resistance;34893/34930/34976/35428.15/35584.30/35648/35810.90/35902.90/36248/36455.15/36497/36615/37232/37708.75.
(Bold and underlined
figures are most important)
It continued correcting and closed with a
loss of 284.80 points today.
Furthermore it is making lower top and bottom on the line chart and today it
has broken short bottom on the bar chart also, which is an extremely weak sign,
so it seems that it has gotten into very short term correction mode therefore further
fall from here looks quite imminent. It is important to mention here that it
may resume the steady up move only once it crosses its critical range of 35648---36248 and sustain above it on
the closing basis, else down move may continue. Please note that chances of
crossing the said range looks slim at this point of time. However, going up
from here its critical resistance point would be at 34930----35176---35461---35584.30---35649---35810.90---36248.
Similarly moving down its critical support points would be at 34535.26(this
figure can change)—34410---33625 & 33273, sustained break below 34535.26 can push it into deep short term corrective mode,
sustained break below 34410 will
accelerate the down move and sustained break below 33625 & 33273 could deepen the correction further. The other
critical support points are at 34287---34249.33---33625---33334---33273---33130---32921.15---32613---32465.
The long term bias is still positive as of now but it is into very
short term corrective phase and it may last for few days. Therefore short term
bias negative as of now.
It is
important to mention here that technically this on-going uptrend is showing enough
strength and looking good for the continuation of the up move but this up rally
is not in sync with the fundamentals and you are well aware that it is the
fundamentals which eventually hold the Priceline. Therefore this on-going up
rally may deceive you at any point of time, so be alert and careful in long
trade henceforth.
In view of the above observation,
since it is into very short term correction therefore it is suggested to avoid
long trade in general till clarity on correction completion emerges. However aggressive traders can try long trade
if it moves above 34990 and maintain
for some time or can try buy on decline at appropriate points but not below 34535. Please note that buying on
decline or at any point of time could be a risky trade in corrective mode. Since
it has not crossed its critical resistance range as mentioned above and gotten
into correction mode, therefore short trade should be tried after
the reasonable rise or can be tried on the price breakdown for taking advantage
of the corrective 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 (Suggested)
1. Buy on decline near 34535 but not below it with a stop loss
of 34380. It is for aggressive traders and could be a highly risky trade.
Or
Buy if it moves above 34930 and maintain for some time with a
stop loss of 34850. It is for the aggressive traders and could be a risky trade.
2. Sell on the rise near or within
the range of 35280---35320 with a stop loss of 35375. It could be a risky trade
but worth trying for intraday gain.
Or
Sell if it does not move
above 34930 in first hour of trade with a stop loss of 35025. It could be a highly 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.
