EquityPandit’s Outlook for CNX Auto for the week (August 17, 2015 – August 21, 2015):
CNX AUTO index closed the week on negative note losing around 2%.
As we have mentioned last week that the index has formed a Shooting star pattern on daily charts on 07/08/2015 indicating the trend reversal in an uptrend and the index corrected to the levels of 8400 before closing the week on 8618 levels.
The index has formed a Morning star pattern on daily charts in downtrend indicating the trend reversal. The index managed to close above the downward sloping trend-line from where the index had broken out last week.
Support for the index lies in the zone of 8400 to 8500 from where the index has broken out, short term moving averages and long term moving averages are positioned around this levels.
Resistance for the index lies in the zone of 8800 to 8850 above which the index can move to the levels of 9000.
Broad range for the index is seen from 8400 to 8500 on downside to 8900 to 9000 on upside.