EquityPandit’s Outlook for CNX Auto for the week (September 14, 2015 – September 18, 2015):
CNX AUTO index closed the week on positive note gaining around 4%.
As we have mentioned last week that the index is approaching towards the trend-line support positioned around the levels of 7400. If the index breaks below the levels of 7400 on closing basis the index can drift to the levels of 7000 where 500 Daily SMA is positioned and the index manages to hit a low of 7413 during the week and bounce back to the levels of 7835.
As we have informed last week that if the index manages to close above the levels of 7700 then the index can move to the levels of 8000 where major trend-line resistance for the index is positioned and the index manages to hit a high of 7968 levels.
The index is approaching towards the strong resistance zone of 8000 to 8050 from where the index broke down. If the index manages to close above the levels of 8050 the index can move to the levels of 8300 where 100 Daily SMA is positioned.
The index has a strong support around the levels of 7650 where channel support for the index is positioned. If the index drifts below this levels the index can move to the levels of 7400.
Broad range for the index is seen from 7500 to 7550 on downside to 8000 to 8050 on upside.