EquityPandit’s Outlook for CNX Energy for the week (October 05, 2015 – October 09, 2015):
CNX ENERGY index closed the week on positive note gaining around 2%.
As we have mentioned last week that support for the index lies in the zone of 7500. If the index broke below the levels of 7500 on closing basis then the index can drift to the levels of 7300. The index manages to hit a low of 7360 during the week and close the week around the levels of 7640.
The index has formed a Doji pattern on monthly charts in a strong downtrend indicating the trend reversal or the indecision among the traders about the further direction of the index. The index has been moving in the range of 7300 on downside to 7800 on upside since last 4 weeks. A break of the index on either side can move the index further 5% to 7% in that direction.
Support for the index lies in the zone of 7500. If the index broke below the levels of 7500 on closing basis then the index can drift to the levels of 7300.
If the index manages to close above the levels of 7800 for couple of days, the index can witness a huge short covering bounce which can take index to the levels of 8000.
Broad range for the index is seen between 7400 to 7450 on downside to 7900 to 8000 on upside.