EquityPandit’s Outlook for CNX Auto for week (August 03, 2015 – August 07, 2015):

CNX AUTO:

CNX AUTO index closed the week on positive note gaining around 1%.

As we have mentioned last week that the index has formed a Evening Star pattern in an uptrend indicating the trend reversal and the index corrected to the levels of 8236 during the week. The index recovered during the week to close the week on high around the strong resistance zone of 8550 to 8600.

The index is approaching towards the strong resistance zone of 8600 where upper end of channel is positioned.

If the index manages to close above the levels of 8650, in index will break-out of the 3 months consolidation and the index can move to the levels of 8800.

Support for the index lies in the zone of 8300 to 8400 where short term and long term moving averages are positioned.

Resistance for the index lies in the zone of 8550 to 8600 where trend-line resistance is lying.

Broad range for the index is seen from 8300 to 8350 on downside to 8600 to 8650 on upside.