Open-37954---High-38112.60--Low—37680---Close-37830.30 on 24.9.2021.
Support:37811.95/37708.75/37232/37140/36615/36525.95/36317/36248/36151.95/35531/34817.50.
Resistance;38112.75/38545/38719/39093/39695/40498/40680/40855/42222/42808.
(Bold and underlined
figures are most important)
It opened with an up gap today and
went almost near its all-time high of 38112.75
but could not cross it, so it has made a double top which is slightly
concerning but price pattern is still o.k., however it is suggested to avoid
long trade till it moves above 38112.75
and sustain on the closing basis because if it fails to cross it then it could
fall sharply. Moving down its critical support points would be at 37795.40--37738---37650---37335---37120---36900.50---36880---36655---36393---36248(figures
may change) , break below 37795.40 &
37738 will be an alert point, break below 37650 on the closing basis will push it into very short term
correction mode, sustained break below 37335
on the closing basis will weaken it further and push it into short term
corrective mode and sustained break below 37120
on the closing basis could push it into deep short term corrective mode which
could drag it down further. Please note that its most important and solid
support range is 36880---36655---36393---36248(figures may change) therefore
break below 36880 on the closing
basis could be a strong warning signal for long trade and sustained break below 36393 and finally break
below 36248 on the closing should be
the exit point. Similarly moving up the critical resistance points could be at 38112.75---38544.40---38719---38912---39234---39485.(figures
may change), it could correct at any of these points and it did retreated from
38112.75 levels.
It is important to mention here that its
long term technical setup is good for the uptrend to
continue. Furthermore few important technical indicators have also improved but
some are still giving weak signal, however price pattern is still ok, therefore
if it continues to move up for the next 1-2
days then rest of the indicators may also turn positive. The long term bias is positive as of now. The
short term bias is also positive but little caution is to be exercised in wake
of some weak technical indicators.
In view of the above observation, for
safe traders long trade can be tried if it closes above 38112.75 or if it holds the range of 37795.40--37738---37650 for some time but not below it. However, aggressive traders
can also try long trade on decline at appropriate points or near 37120 but not below it. Please note
that long trade below 37795.40 could
be a risky affair for the day. It is out of corrective mode but intraday
correction always happens as it happened today also, therefore short
trade can also be attempted after reasonable rise or can be tried on the price
breakdown for taking advantage of the intraday gains. Please note that short
trade could be a risky proposition as it is in the uptrend, so be alert and
watchful in short trade.
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 if it holds the range of 37795.40--37738---37650 for some time with a
stop loss of 37400. It is for both the traders.
Or
Buy on decline near 37120 but not below it with a stop loss of 36860.
It is for the aggressive traders. It could be a highly risky trade.
2. Sell if it moves below 37650
and maintain for some time with a stop loss of 37800. It could be a risky trade
but worth trying for intraday gains.
Or
Sell if it does not move
above 38112.75 in first one and half hour of trade with a stop loss of 38200. It
could be a risky trade but worth trying for intraday gains.
Or
Sell on the rise near or
within the range of 38450---38550 with a stop loss of 38650. It could be a
highly risky trade but worth trying for intraday gain.
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.
