Open-34735.15--High-34787.40--Low—33908.95--Close-34558 on 18.6.2021
Support:34410/34374/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.
Resistance;34641/34658.70/34893.25/34930/34976/35380/35428.15/35584.30/35648/35810.90/35902.90/36248/36455.15/36497/36615/37232/37708.75.
(Bold and
underlined figures are most important)
It exhibited huge volatility today, it
plunged down sharply in the first half of the trade and hit an intraday low of 33908.95 and then in the late afternoon
it made sharp recovery but closed with meager loss of 47.40 points. It is already into very short correction mode,
furthermore it is below some of its short term moving averages and some
technical indicators are also showing potential weakness, which is an extremely
bad sign. Please note that if it does not bounce back sharply and move above 35248(this figure can change) as of now
on the closing basis in the next week starting from 21.6.2021, then down move will continue with intermittent relief
rallies. It is important to mention here that it will only resume the steady up
move once it crosses its critical range of 35648---36248
and sustain above it on the closing basis, else down move will definitely
continue. Please note that if it sustain above 36248 on the closing basis then it could retest its all-time high
of 37708.75 or may go beyond also.
But looking at today’s and last few days’ movement chances of moving above 36248 and sustain looks extremely bleak
at this point of time. However going up to 36248
level from here it will face critical resistance at 34641.20---34894---34930---35070---35176---35472---35527---35584.30---35649---35810.90---36248.
Similarly moving down its critical support points would be at 34535.26(this figure can change)—34410---33908.95---33625
& 33273. It is already
into very short term corrective mode, sustained break below 34535.26 will push it into deep
short term corrective mode, sustained break below 33908.95 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.
Please avoid long trade completely if it moves below 32465 and sustain on the closing basis.
The long term outlook is positive as of now but short term bias looks terribly
weak as of now and likely to drag it down.
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, it is into
very short corrective mode; therefore it is suggested to avoid long trade in
general till clarity on correction completion emerges. However highly
aggressive traders can try long trade if it moves above 34860 and maintain for some time or can buy on decline at
appropriate points or near 34374 but
not below it. Please note that any type of long trade in the corrective mode
could be a risky affair, mind you. Since it has not crossed its critical
resistance range as mentioned above and into corrective mode again, 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 34374 but not below it with a stop loss
of 34140. It is for the highly aggressive traders and could be a highly risky
trade.
Or
Buy if it moves above 34860 and maintain for some time with a
stop loss of 34760. It is for the highly aggressive traders and could be a
highly risky trade.
2. Sell on the rise near or
within the range of 34900---35100 with a stop loss of 35175. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 34358
and maintain for some time with a stop loss of 34570. It could be a highly
risky trade but worth trying.
Or
Sell if it moves below 33908
and maintain for some time with a stop loss of 34050. 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.
