CNX Auto : Ki kara petrol (Bearish) khatam hi nahi honda ?
Updated
CNX Auto has broken out of long term trendline support followed by lower top lower bottom structure. However, daily and weekly RSI is showing 1-2-3 type positive divergence which means short trap can come into play in short term which may take it to 8200-8400 on the higher side. 7640 is the support on lower side. Overall, it is poised for 6700-6800 till the time it is trading below 8850-8870 on daily closing basis.
Trader should avoid short in major auto stocks and wait for 5-6% bounce in auto index to create short position.If index falls below 8700 before moving upward, then short term buy position can be created keeping 8500 as stop loss.
Trader should avoid short in major auto stocks and wait for 5-6% bounce in auto index to create short position.If index falls below 8700 before moving upward, then short term buy position can be created keeping 8500 as stop loss.
Trade active
As expected , index bounced to 8350. We'll wait for further confirmation to go short.
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