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The resistance levels between 22,070-22,100 signify a level where upward price momentum may weaken, leading to a correction in the near term. The sharp rally has pushed the index into an overbought zone, indicating a high possibility of a correction.
Technical indicators like RSI, MACD, and Stochastic support this claim, showing that the index is likely to experience a price-wise correction.
Support levels on the charts around 21,725-21,550-21,225 suggest that the index will likely find some support around these levels, possibly leading to a price reversal.
In order to capitalise on this situation, traders are advised to sell on a rise with a strict stop loss of 22,100 on a closing basis.
This trading strategy will enable traders to profit from the expected price-wise correction, while limiting their losses.
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