The price of The price of Pepper witnessed a sharp fall on 25th May, 2011 and registered a close below its key moving averages which had been providing good support for the price of pepper during the recent uptrend. Since then the price of Pepper has been consolidating in a narrow range of `29450--`28825 levels. But the key observation to be made on the daily charts of Pepper is that the price has been taking shape of a Reverse/Bearish Flag formation. The Reverse Flag price pattern is a continuation pattern and suggests that the price will gain momentum for a fresh down move after a small consolidation. A break below `28790 levels will confirm the pattern and will bring about fresh downside momentum in the price of Pepper. The other observation that supports the bearish argument is that the MACD indicator has also given a sell signal.
Hence, we recommend traders to sell below `28790 levels with a stop loss placed above `29257 levels for downside targets of `28450 and `28000 levels.
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