The price of Turmeric has been trading within broad ranges of Rs 7400 to Rs 7150 levels after it corrected from a high of Rs 10618 levels as on 08th Apr, 2011.
The key observation to be made is that the price of Turmeric has taken shape of an Inverted head and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 7400 levels. Upside targets of Rs 7500 / Rs 7625 levels can be seen in this counter once the price breaks above the neckline resistance level mentioned above.
Some of the other positive technical factors are that the price of turmeric has also closed above its key moving average clusters and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 7400 levels and again on dips to Rs 7340—Rs 7290 levels for the above mentioned upside targets.
A stop loss of Rs 7159 levels should be maintained on all long positions.
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