EquityPandit’s Outlook for CNX Auto for the week (October 12, 2015 – October 16, 2015):

CNX AUTO:

CNX AUTO index closed the week on positive note gaining around 4%.

As we have mentioned last week that the index has formed a Dragon Fly doji pattern on weekly charts in a downtrend indicating the trend reversal. If the index manages to close above the levels of 7850 then the index can move to the levels of 8050. The index manages to hit a high of 8098 during the week and close the week around the levels of 8050.

The index is trading around the strong resistance zone of 8050 from where the index has broken down. If the index manages to close above the levels of 8050 the index can move to the levels of 8200 to 8400 where 100 & 200 Daily SMA and channel resistance for the index are lying.

Support for the index lies in the zone of 7900 where trend-line support for the index is lying. If the index breaks below the levels of 7900 on closing basis then the index can move to the levels of 7600 to 7700 where channel support for the index is positioned.

Broad range for the index is seen from 7800 to 7850 on downside to 8250 to 8300 on upside.