Technical Outlook & Trading Strategy:-
The price of Nickel was consolidating in a broad range of Rs 1090--Rs 1061 levels over the past few sessions of trade.
The prices have been taking support at its key near term and short term moving averages on corrections.
The smart upmove witnessed over the past two sessions of trade is a sign that the prices are now ready for a fresh upmove.
The momentum indicators are gradually improving. We recommend traders to buy between Rs 1093—Rs 1084 levels with a stop loss placed below Rs 1069.40 levels for upside targets of Rs 1107 and followed by Rs 1120 levels expected to be achieved over the upcoming 3-5 sessions of trade.
Friday, July 29, 2011
MCX SILVER SEPT Contract – Technical Outlook & Trading Strategy
The prices of Silver witnessed a smart rally form the lows of Rs 49538 levels to register a high of
Rs 60819 as on 25th Jul, 2011.
Since then the price have not been able to cross above this swing high and corrected during the previous session.
The price of silver has registered a close below its key near term moving average placed at the Rs 59328 levels.
Another key observation to be made is the breakdown registered on the RSI indicator. The RSI indicator has now given a sell signal as outlined in the chart above.
We believe that the prices of silver will witness correction during the upcoming few sessions of trade and the prices could test its medium term moving average support placed at the Rs 57100 levels.
We recommend traders to sell 50% at current levels and again on rallies to Rs 59100--Rs 59350
levels with a stop loss placed above Rs 59577 levels for downside targets of Rs 57825 / Rs 57100
levels.
MCX SILVER SEPT CONTRACT OPEN Rs 59670.00 HIGH Rs 59698.00 LOW Rs 58130.00 CLOSE Rs 58630.00.
Rs 60819 as on 25th Jul, 2011.
Since then the price have not been able to cross above this swing high and corrected during the previous session.
The price of silver has registered a close below its key near term moving average placed at the Rs 59328 levels.
Another key observation to be made is the breakdown registered on the RSI indicator. The RSI indicator has now given a sell signal as outlined in the chart above.
We believe that the prices of silver will witness correction during the upcoming few sessions of trade and the prices could test its medium term moving average support placed at the Rs 57100 levels.
We recommend traders to sell 50% at current levels and again on rallies to Rs 59100--Rs 59350
levels with a stop loss placed above Rs 59577 levels for downside targets of Rs 57825 / Rs 57100
levels.
MCX SILVER SEPT CONTRACT OPEN Rs 59670.00 HIGH Rs 59698.00 LOW Rs 58130.00 CLOSE Rs 58630.00.
Thursday, July 28, 2011
MCX Mentha Oil July CMP—Rs 1078.30
Technical Outlook & Trading Strategy:-
The price of Mentha Oil had registered a head & shoulder pattern breakdown on its intraday charts.
Since then the prices have rallied back towards the neckline resistance levels of Rs 1086 levels during the previous session.
But, the key observation to be made is that the recent pullback was on the back of below average volumes which is a sign that there isn’t any real buying interest in the counter.
The momentum indicators are still trading in bearish mode. Thus considering the overall technical structure outlined above, we believe that this is a good opportunity for traders to open up short positions in the counter.
We recommend traders to sell between Rs 1085—Rs 1074 levels with a stop loss placed above Rs 1095.60 levels for downside targets of Rs 1060 and followed by Rs 1038 levels.
The price of Mentha Oil had registered a head & shoulder pattern breakdown on its intraday charts.
Since then the prices have rallied back towards the neckline resistance levels of Rs 1086 levels during the previous session.
But, the key observation to be made is that the recent pullback was on the back of below average volumes which is a sign that there isn’t any real buying interest in the counter.
The momentum indicators are still trading in bearish mode. Thus considering the overall technical structure outlined above, we believe that this is a good opportunity for traders to open up short positions in the counter.
We recommend traders to sell between Rs 1085—Rs 1074 levels with a stop loss placed above Rs 1095.60 levels for downside targets of Rs 1060 and followed by Rs 1038 levels.
MCX COPPER Aug Contract – Technical Outlook & Trading Strategy
The price pattern of Copper over the past 3-4 sessions of trade is taking shape of a bearish head
and shoulder pattern on the intraday charts.
The formation of this price pattern is a sign of distribution and signals that the future price action of an index/stock/commodity will trade with a negative bias.
The neckline support for the said pattern is placed at the Rs 431.25 levels. A sustained break below the Rs 431.25 levels will see the prices of Copper heading down towards the Rs 428 / Rs 425 levels.
Another key observation to be made is that the recent rally towards the Rs 438.40 levels was met by a negative divergence by the RSI indicator, as a result of which the prices did not sustain at higher levels and thus slipped below its key moving averages.
We recommend traders to sell 50% at current levels and again on rallies to Rs 437.25--Rs 438.40 levels with a stop loss placed above 441.60 levels for downside targets of Rs 428 / Rs 425 levels.
MCX COPPER AUG CONTRACT OPEN Rs 436.80 HIGH Rs 436.80 LOW Rs 432.65 CLOSE Rs 434.60.
and shoulder pattern on the intraday charts.
The formation of this price pattern is a sign of distribution and signals that the future price action of an index/stock/commodity will trade with a negative bias.
The neckline support for the said pattern is placed at the Rs 431.25 levels. A sustained break below the Rs 431.25 levels will see the prices of Copper heading down towards the Rs 428 / Rs 425 levels.
Another key observation to be made is that the recent rally towards the Rs 438.40 levels was met by a negative divergence by the RSI indicator, as a result of which the prices did not sustain at higher levels and thus slipped below its key moving averages.
We recommend traders to sell 50% at current levels and again on rallies to Rs 437.25--Rs 438.40 levels with a stop loss placed above 441.60 levels for downside targets of Rs 428 / Rs 425 levels.
MCX COPPER AUG CONTRACT OPEN Rs 436.80 HIGH Rs 436.80 LOW Rs 432.65 CLOSE Rs 434.60.
Wednesday, July 27, 2011
NCDEX KAPASS RNR Feb 2012 CMP—Rs 680.10
Technical Outlook & Trading Strategy:-
The price of Kapass witnessed a sharp correction from the highs of Rs 1228 levels as on 13th Apr, 2011 to register a low of Rs 640 levels as on 19th June, 2011.
Since this correction the prices have been taking support between the Rs 645—Rs 640 zone and the prices have formed a triple bottom pattern on the daily charts.
This pattern is a sign of accumulation in the counter and signals that a bottom is in place over the short term period.
The momentum indicators have also come out of the oversold territory and are now giving bullish signals.
We recommend traders to buy 50% at current levels and again on dips to Rs 656--Rs 648 levels with a stop loss placed below Rs 639 levels for upside targets of Rs 710 / Rs 745 levels expected to be achieved over the upcoming 3-5 sessions of trade.
The price of Kapass witnessed a sharp correction from the highs of Rs 1228 levels as on 13th Apr, 2011 to register a low of Rs 640 levels as on 19th June, 2011.
Since this correction the prices have been taking support between the Rs 645—Rs 640 zone and the prices have formed a triple bottom pattern on the daily charts.
This pattern is a sign of accumulation in the counter and signals that a bottom is in place over the short term period.
The momentum indicators have also come out of the oversold territory and are now giving bullish signals.
We recommend traders to buy 50% at current levels and again on dips to Rs 656--Rs 648 levels with a stop loss placed below Rs 639 levels for upside targets of Rs 710 / Rs 745 levels expected to be achieved over the upcoming 3-5 sessions of trade.
MCX Natural Gas Aug CMP—Rs 192.50
Technical Outlook & Trading Strategy:-
We reiterate our bearish bias on pepper. The price pattern of Natural Gas since 19th Apr, 2011 is taking shape of a bearish head and shoulder pattern on the daily charts.
The formation of this price pattern is a sign of distribution and signals that the future price action of an index/stock/commodity will trade with a negative bias.
The neckline support for the said pattern is placed at the Rs 184.70 levels. A sustained break below the Rs 193.80 levels will see the prices of Natural gas heading down towards the neckline support level of Rs 184.70 levels.
We recommend traders to sell 50% between Rs 193.75—Rs 191.50 levels and again on rallies to Rs 197.50—Rs 198.50 with a stop loss placed above Rs 202.30 levels for downside targets of Rs 184.70 and followed by Rs 180 levels.
We reiterate our bearish bias on pepper. The price pattern of Natural Gas since 19th Apr, 2011 is taking shape of a bearish head and shoulder pattern on the daily charts.
The formation of this price pattern is a sign of distribution and signals that the future price action of an index/stock/commodity will trade with a negative bias.
The neckline support for the said pattern is placed at the Rs 184.70 levels. A sustained break below the Rs 193.80 levels will see the prices of Natural gas heading down towards the neckline support level of Rs 184.70 levels.
We recommend traders to sell 50% between Rs 193.75—Rs 191.50 levels and again on rallies to Rs 197.50—Rs 198.50 with a stop loss placed above Rs 202.30 levels for downside targets of Rs 184.70 and followed by Rs 180 levels.
NCDEX MUSTARD SEED Aug Contract – Technical Outlook & Trading Strategy
The price of Mustard seed witnessed a strong rally once it gave a breakout above the down
trendline resistance as outlined in the above chart.
Since then, the price of mustard seed has been consolidating in a very narrow range over the past few sessions of trade and this consolidation is now taking shape of a Bullish Pennant formation on the daily charts.
A breakout from the Pennant price pattern is a continuation pattern and suggests that the Index/commodity/stock price, has gained momentum for a fresh up move after a small consolidation.
The breakout in case of mustard seed will be registered once the price moves above the Rs 3010 levels on a sustained basis.
Some of the other positive technical factors are that the prices have been sustaining above its key moving average clusters and the MACD indicator is also trading in bullish mode.
We recommend traders to buy 50% on a sustained break above the Rs 3010 levels and again of
dips to Rs 2995--Rs 2980 levels with a stop loss placed below Rs 2959 levels for upside targets of
Rs 3055 / Rs 3073 levels.
trendline resistance as outlined in the above chart.
Since then, the price of mustard seed has been consolidating in a very narrow range over the past few sessions of trade and this consolidation is now taking shape of a Bullish Pennant formation on the daily charts.
A breakout from the Pennant price pattern is a continuation pattern and suggests that the Index/commodity/stock price, has gained momentum for a fresh up move after a small consolidation.
The breakout in case of mustard seed will be registered once the price moves above the Rs 3010 levels on a sustained basis.
Some of the other positive technical factors are that the prices have been sustaining above its key moving average clusters and the MACD indicator is also trading in bullish mode.
We recommend traders to buy 50% on a sustained break above the Rs 3010 levels and again of
dips to Rs 2995--Rs 2980 levels with a stop loss placed below Rs 2959 levels for upside targets of
Rs 3055 / Rs 3073 levels.
Tuesday, July 26, 2011
NCDEX Pepper Aug CMP—Rs 29596.00
Technical Outlook & Trading Strategy:-
We reiterate our bullish bias on pepper. The price of pepper has been taking good support at the rising trendline support on its weekly charts. The prices have now bounced back smartly from this trendline support during the previous week.
Also, the recent correction from the highs of Rs 30999 levels was on the back of declining/below average trading volumes which clearly depicts that the price of pepper weren’t under any real supply pressure.
Some of the other positive technical triggers are the buy signal given by the RSI indicator and the price has also closed above its key moving average clusters. We believe that the price of pepper will begin a fresh upmove from current levels and test its recent highs of Rs 30999 levels.
We recommend traders to buy 50% at current levels and again on dips to Rs 29150--Rs 29000 levels with a stop loss placed below Rs 28697 levels for upside targets of Rs 30300 / Rs 30900 levels expected to be achieved over the upcoming 3-5 sessions of trade.
We reiterate our bullish bias on pepper. The price of pepper has been taking good support at the rising trendline support on its weekly charts. The prices have now bounced back smartly from this trendline support during the previous week.
Also, the recent correction from the highs of Rs 30999 levels was on the back of declining/below average trading volumes which clearly depicts that the price of pepper weren’t under any real supply pressure.
Some of the other positive technical triggers are the buy signal given by the RSI indicator and the price has also closed above its key moving average clusters. We believe that the price of pepper will begin a fresh upmove from current levels and test its recent highs of Rs 30999 levels.
We recommend traders to buy 50% at current levels and again on dips to Rs 29150--Rs 29000 levels with a stop loss placed below Rs 28697 levels for upside targets of Rs 30300 / Rs 30900 levels expected to be achieved over the upcoming 3-5 sessions of trade.
MCX ZINC July CMP—Rs 108.35
Technical Outlook & Trading Strategy:-
The price action of Zinc on the intraday charts is taking shape of a bearish head & shoulder pattern.
We believe that this is an extremely bearish development in this base metal and one could see the prices of Zinc trading with a negative bias over the upcoming sessions. The momentum indicators are also showing signs of weakness.
We recommend traders to sell between Rs 108.60—Rs 108 levels with a stop loss placed above Rs 109.25 levels for downside targets of Rs 107.40 and followed by Rs 106.75 levels.
The price action of Zinc on the intraday charts is taking shape of a bearish head & shoulder pattern.
We believe that this is an extremely bearish development in this base metal and one could see the prices of Zinc trading with a negative bias over the upcoming sessions. The momentum indicators are also showing signs of weakness.
We recommend traders to sell between Rs 108.60—Rs 108 levels with a stop loss placed above Rs 109.25 levels for downside targets of Rs 107.40 and followed by Rs 106.75 levels.
MCX NATURAL GAS Aug Contract – Technical Outlook & Trading Strategy
The price pattern of Natural Gas since 19th Apr, 2011 is taking shape of a bearish head and shoulder pattern on the daily charts. The formation of this price pattern is a sign of distribution and signals that the future price action of an index/stock/commodity will trade with a negative bias.
The neckline support for the said pattern is placed at the Rs 184.70 levels. A sustained break below the Rs 193.80 levels will see the prices of Natural gas heading down towards the neckline support level of Rs 184.70 levels.
Another key observation to be made is that the recent rally towards the Rs 204.50 levels was met by a negative divergence by the RSI indicator, as a result of which the prices did not sustain at higher levels and thus slipped below its near term moving averages.
Once the price gives a sustained breakdown below the neckline support levels it can correct to levels of Rs 176.40 / Rs 169.
We recommend traders to sell 50% on a sustained break below the Rs 193.80 levels and again of rallies to Rs 198--Rs 199 levels with a stop loss placed above Rs 202.30 levels for the initial downside target of Rs 184.70 levels, followed by the implied targets of Rs 176.40 / Rs 169 levels on a sustained breakdown below the neckline support level.
The neckline support for the said pattern is placed at the Rs 184.70 levels. A sustained break below the Rs 193.80 levels will see the prices of Natural gas heading down towards the neckline support level of Rs 184.70 levels.
Another key observation to be made is that the recent rally towards the Rs 204.50 levels was met by a negative divergence by the RSI indicator, as a result of which the prices did not sustain at higher levels and thus slipped below its near term moving averages.
Once the price gives a sustained breakdown below the neckline support levels it can correct to levels of Rs 176.40 / Rs 169.
We recommend traders to sell 50% on a sustained break below the Rs 193.80 levels and again of rallies to Rs 198--Rs 199 levels with a stop loss placed above Rs 202.30 levels for the initial downside target of Rs 184.70 levels, followed by the implied targets of Rs 176.40 / Rs 169 levels on a sustained breakdown below the neckline support level.
Monday, July 25, 2011
MCX Natural Gas Aug CMP—Rs 195.70
Technical Outlook & Trading Strategy:-
The price pattern of Natural Gas since 19th Apr, 2011 is taking shape of a bearish head and shoulder pattern on the daily charts.
The formation of this price pattern is a sign of distribution and indicates that the future price
action of an index/stock/commodity will trade with a negative bias.
The neckline support for the said pattern is placed at the Rs 184.70 levels. A sustained break below the 200 day moving average placed at the Rs 193.90 levels will see the prices of Natural gas heading down towards the neckline support level of Rs 184.70 levels.
We recommend traders to sell 50% on a break below Rs 193.90 levels and 50% on rallies to Rs 198—Rs 199 levels with a stop loss placed above Rs 200.30 levels for downside targets of Rs 188 and followed by Rs 184.75 levels.
The price pattern of Natural Gas since 19th Apr, 2011 is taking shape of a bearish head and shoulder pattern on the daily charts.
The formation of this price pattern is a sign of distribution and indicates that the future price
action of an index/stock/commodity will trade with a negative bias.
The neckline support for the said pattern is placed at the Rs 184.70 levels. A sustained break below the 200 day moving average placed at the Rs 193.90 levels will see the prices of Natural gas heading down towards the neckline support level of Rs 184.70 levels.
We recommend traders to sell 50% on a break below Rs 193.90 levels and 50% on rallies to Rs 198—Rs 199 levels with a stop loss placed above Rs 200.30 levels for downside targets of Rs 188 and followed by Rs 184.75 levels.
NCDEX Soya Oil Ref. Aug CMP—Rs 669.95
Technical Outlook & Trading Strategy:-
The price of Soya oil has registered a symmetrical triangle pattern breakout on its weekly charts.
A breakout form the symmetrical pattern after an upmove signifies that the prices are now ready for a fresh upmove after consolidating within the triangle.
Moreover, the recent rise from the levels of Rs 630-Rs 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter.
The momentum indicators of soya oil are also trading in buy mode.We recommend traders to buy 50% at current levels and again on dips to Rs 665—Rs 663.50 levels with a stop loss placed below Rs 660.90 levels for upside targets of Rs 675.50 and followed by Rs 678 levels.
The price of Soya oil has registered a symmetrical triangle pattern breakout on its weekly charts.
A breakout form the symmetrical pattern after an upmove signifies that the prices are now ready for a fresh upmove after consolidating within the triangle.
Moreover, the recent rise from the levels of Rs 630-Rs 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter.
The momentum indicators of soya oil are also trading in buy mode.We recommend traders to buy 50% at current levels and again on dips to Rs 665—Rs 663.50 levels with a stop loss placed below Rs 660.90 levels for upside targets of Rs 675.50 and followed by Rs 678 levels.
MCX PEPPER Aug Contract – Technical Outlook & Trading Strategy
The price of pepper witnessed a corrective move after a strong rally from the lows of Rs 21835 levels as on 13th Mar, 2011 to register a high of Rs 30999 levels as on 08th May, 2011. But as outlined in the chart above, the prices have been taking good support at the rising trendline support on its weekly charts.
The prices have now bounced back smartly from this trendline support during the previous week. Also, the recent correction from the highs of 30999 levels was on the back of declining/below average trading volumes which clearly depicts that the price of pepper weren’t under any real supply pressure.
Some of the other positive technical triggers are the buy signal given by the RSI indicator and the price has also closed above its key moving average clusters.
We believe that the price of pepper will begin a fresh upmove from current levels and test its recent highs of Rs 30999 or even higher levels.
We recommend traders to buy 50% at current levels and again on dips to Rs 29150--Rs 29000 levels with a stop loss placed below Rs 28697 levels for upside targets of Rs 30300 / Rs 30900 levels expected to be achieved over the upcoming 3-5 sessions of trade.
The prices have now bounced back smartly from this trendline support during the previous week. Also, the recent correction from the highs of 30999 levels was on the back of declining/below average trading volumes which clearly depicts that the price of pepper weren’t under any real supply pressure.
Some of the other positive technical triggers are the buy signal given by the RSI indicator and the price has also closed above its key moving average clusters.
We believe that the price of pepper will begin a fresh upmove from current levels and test its recent highs of Rs 30999 or even higher levels.
We recommend traders to buy 50% at current levels and again on dips to Rs 29150--Rs 29000 levels with a stop loss placed below Rs 28697 levels for upside targets of Rs 30300 / Rs 30900 levels expected to be achieved over the upcoming 3-5 sessions of trade.
Friday, July 22, 2011
NCDEX Soya Oil Ref. Aug CMP—Rs 664.25
Technical Outlook & Trading Strategy:-
The price of Soya oil has registered a symmetrical triangle pattern breakout on its weekly charts. A breakout form the symmetrical pattern after an upmove signifies that the prices are now ready for a fresh upmove after consolidating within the triangle.
Moreover, the recent rise from the levels of Rs 630-Rs 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter. We believe that the price of soya oil can now test upside levels of Rs 672 / Rs 677.50 levels over the upcoming few sessions of trade.
We recommend traders to 50% at current levels and again on dips to Rs 661—Rs 659 levels with a stop loss placed below Rs 655.20 levels for initial upside target of Rs 672 and later followed by Rs 677.50 levels.
The price of Soya oil has registered a symmetrical triangle pattern breakout on its weekly charts. A breakout form the symmetrical pattern after an upmove signifies that the prices are now ready for a fresh upmove after consolidating within the triangle.
Moreover, the recent rise from the levels of Rs 630-Rs 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter. We believe that the price of soya oil can now test upside levels of Rs 672 / Rs 677.50 levels over the upcoming few sessions of trade.
We recommend traders to 50% at current levels and again on dips to Rs 661—Rs 659 levels with a stop loss placed below Rs 655.20 levels for initial upside target of Rs 672 and later followed by Rs 677.50 levels.
MCX Silver Sept CMP—Rs 58075
Technical Outlook & Trading Strategy:-
The precious metal pack witnessed heavy selling pressure during the previous session of trade. Just like the price of Gold the price pattern of Silver over the past few sessions of trade has also taken the shape of a bearish head & shoulder pattern.
This is an extremely bearish technical setup and the price will witness heavy supply pressure once it starts trading below the neckline support of the pattern placed at the Rs 57600 levels. The momentum indicators of Silver are trading weak.
We recommend traders to sell 50% at current levels and again on rallies to Rs 58600—Rs 58750 levels with a stop loss placed below Rs 58980 levels for downside targets of Rs 56950 and/or Rs 56500 levels expected to be achieved in the upcoming 2 sessions of trade.
The precious metal pack witnessed heavy selling pressure during the previous session of trade. Just like the price of Gold the price pattern of Silver over the past few sessions of trade has also taken the shape of a bearish head & shoulder pattern.
This is an extremely bearish technical setup and the price will witness heavy supply pressure once it starts trading below the neckline support of the pattern placed at the Rs 57600 levels. The momentum indicators of Silver are trading weak.
We recommend traders to sell 50% at current levels and again on rallies to Rs 58600—Rs 58750 levels with a stop loss placed below Rs 58980 levels for downside targets of Rs 56950 and/or Rs 56500 levels expected to be achieved in the upcoming 2 sessions of trade.
MCX GOLD Aug Contract – Technical Outlook & Trading Strategy
The price of Gold have witnessed a strong rally from the lows of Rs 21614 levels as on 01st July,2011 to register a high of Rs 23320 levels as on 19th July, 2011.
Since then the price of Gold has been consolidating within broad ranges of Rs 23275 to Rs 22930 levels. But, as outlined in the chart above the price pattern of Gold within this consolidation range has formed a bearish head and shoulder pattern on the intraday charts.
A head & shoulder price pattern is an extremely bearish technical setup and will have a negative effect for the future price movements of an index/stock or a commodity price.
Some of the other bearish signals that support the bearish argument are the sell signal given by the MACD indicator and the sell off witnessed during the previous session was also on the back of strong surge in volumes which is a clear indication that the prices were under supply pressure.
We recommend traders to sell 50% at current levels and again on rallies to Rs 22975--Rs 23050 levels with a stop loss placed above Rs 23109 levels for downside targets of Rs 22775 / Rs 22670 levels.
Since then the price of Gold has been consolidating within broad ranges of Rs 23275 to Rs 22930 levels. But, as outlined in the chart above the price pattern of Gold within this consolidation range has formed a bearish head and shoulder pattern on the intraday charts.
A head & shoulder price pattern is an extremely bearish technical setup and will have a negative effect for the future price movements of an index/stock or a commodity price.
Some of the other bearish signals that support the bearish argument are the sell signal given by the MACD indicator and the sell off witnessed during the previous session was also on the back of strong surge in volumes which is a clear indication that the prices were under supply pressure.
We recommend traders to sell 50% at current levels and again on rallies to Rs 22975--Rs 23050 levels with a stop loss placed above Rs 23109 levels for downside targets of Rs 22775 / Rs 22670 levels.
Thursday, July 21, 2011
MCX CRUDEOIL Aug Contract – Technical Outlook & Trading Strategy
The price of Crude oil witnessed a sharp correction from the highs of Rs 4777 levels to register a low of Rs 4118 levels as on 24th June, 2011.
The Prices of crude oil have since then recovered from the lower levels. But, as outlined in the chart above, the price has been taking support at its ascending trendline on every corrective move from higher levels.
Moreover, the overall price pattern over the past few sessions of trade now seems to be taking shape of an Ascending triangle pattern with the resistance levels placed at the Rs 4440 levels.
Thus a sustained break above the 4440 levels will see the price of crude oil rally towards levels of Rs 4500 / Rs 4550 levels.
The price of crude oil is also sustaining above its key moving average clusters.
We recommend traders to buy 50% on a break above Rs 4440 levels and again on dips to Rs 4405-- Rs 4390 levels with a stop loss placed below Rs 4359 levels for upside targets mentioned above.
The Prices of crude oil have since then recovered from the lower levels. But, as outlined in the chart above, the price has been taking support at its ascending trendline on every corrective move from higher levels.
Moreover, the overall price pattern over the past few sessions of trade now seems to be taking shape of an Ascending triangle pattern with the resistance levels placed at the Rs 4440 levels.
Thus a sustained break above the 4440 levels will see the price of crude oil rally towards levels of Rs 4500 / Rs 4550 levels.
The price of crude oil is also sustaining above its key moving average clusters.
We recommend traders to buy 50% on a break above Rs 4440 levels and again on dips to Rs 4405-- Rs 4390 levels with a stop loss placed below Rs 4359 levels for upside targets mentioned above.
NCDEX Soya Oil Ref. Aug CMP—Rs 663.15
Technical Outlook & Trading Strategy:-
The price of Soya oil has registered a symmetrical triangle pattern breakout on its weekly charts. A breakout form the symmetrical pattern after an upmove signifies that the prices are now ready for a fresh upmove after consolidating within the triangle.
Moreover, the recent rise from the levels of Rs 630-Rs 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter.
We believe that the price of soya oil can now test upside levels of Rs 670 / Rs 676 levels over the upcoming few sessions of trade.
We recommend traders to 50% at current levels and again on dips to Rs 660.50—Rs 659 levels with a stop loss placed below Rs 655.20 levels for initial upside target of Rs 670 and later followed by Rs 676 levels.
The price of Soya oil has registered a symmetrical triangle pattern breakout on its weekly charts. A breakout form the symmetrical pattern after an upmove signifies that the prices are now ready for a fresh upmove after consolidating within the triangle.
Moreover, the recent rise from the levels of Rs 630-Rs 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter.
We believe that the price of soya oil can now test upside levels of Rs 670 / Rs 676 levels over the upcoming few sessions of trade.
We recommend traders to 50% at current levels and again on dips to Rs 660.50—Rs 659 levels with a stop loss placed below Rs 655.20 levels for initial upside target of Rs 670 and later followed by Rs 676 levels.
MCX Zinc Jul CMP—Rs 108.30
Technical Outlook & Trading Strategy:-
The price of Zinc has witnessed a smart rally from the lows of Rs 96.70 levels as on 20th June, 2011 levels to register a high of Rs 109.80 levels as on 19th Jul, 2011.
But the momentum indicators of Zinc are now in extremely overbought zone and adding to that the price of zinc has formed a bearish reversal bar on its daily charts.
We believe that the price of zinc is now set for a corrective move and one could see supply coming in on rallies to Rs 109—Rs 109.50 levels.
We recommend traders to sell between Rs 108—Rs 108.75 levels with a stop loss placed above Rs 109.80 levels for downside targets of Rs 107 and/or Rs 106.25 levels
The price of Zinc has witnessed a smart rally from the lows of Rs 96.70 levels as on 20th June, 2011 levels to register a high of Rs 109.80 levels as on 19th Jul, 2011.
But the momentum indicators of Zinc are now in extremely overbought zone and adding to that the price of zinc has formed a bearish reversal bar on its daily charts.
We believe that the price of zinc is now set for a corrective move and one could see supply coming in on rallies to Rs 109—Rs 109.50 levels.
We recommend traders to sell between Rs 108—Rs 108.75 levels with a stop loss placed above Rs 109.80 levels for downside targets of Rs 107 and/or Rs 106.25 levels
Wednesday, July 20, 2011
MCX Lead Jul CMP—Rs 122.70
Technical Outlook & Trading Strategy:-
The price of Lead rallied from the lows of `107.80 levels to hit a high of Rs 123.40 levels as on 13th Jul, 2011.Since, then the price witnessed a pull back towards its key near term moving average.
The key observation to be made is that, the prices took support at these key averages and this corrective move was also on the back of declining volumes which clearly suggests that the price weren’t under any real supply pressure. Since this pullback the price has resumed their uptrend and we believe that the prices can now test upside levels of Rs 124.25 /Rs 125 levels over the upcoming sessions of trade. The momentum indicators continue to trade in bullish mode.
We recommend traders to buy between Rs 123.15--Rs 122.30 levels with a stop loss of Rs 121.15 levels for upsidetargets mentioned above.
The price of Lead rallied from the lows of `107.80 levels to hit a high of Rs 123.40 levels as on 13th Jul, 2011.Since, then the price witnessed a pull back towards its key near term moving average.
The key observation to be made is that, the prices took support at these key averages and this corrective move was also on the back of declining volumes which clearly suggests that the price weren’t under any real supply pressure. Since this pullback the price has resumed their uptrend and we believe that the prices can now test upside levels of Rs 124.25 /Rs 125 levels over the upcoming sessions of trade. The momentum indicators continue to trade in bullish mode.
We recommend traders to buy between Rs 123.15--Rs 122.30 levels with a stop loss of Rs 121.15 levels for upsidetargets mentioned above.
NCDEX Soya Oil Ref. Aug CMP— Rs 665.45
Technical Outlook & Trading Strategy:-
The price of Soya oil has registered a symmetrical triangle pattern breakout on its weekly charts. A breakout form the symmetrical pattern after an upmove signifies that the prices are now ready for a fresh upmove after consolidating within the triangle.
Moreover, the recent rise from the levels of Rs 630-Rs 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter. We believe that the price of soya oil can now test upside levels of Rs 670 / Rs 676 levels over the upcoming few sessions of trade.
We recommend traders to 50% at current levels and again on dips to Rs 661—Rs 659 levels with a stop loss placed below Rs 655.20 levels for initial upside target of Rs 670 and later followed by Rs 676 levels.
The price of Soya oil has registered a symmetrical triangle pattern breakout on its weekly charts. A breakout form the symmetrical pattern after an upmove signifies that the prices are now ready for a fresh upmove after consolidating within the triangle.
Moreover, the recent rise from the levels of Rs 630-Rs 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter. We believe that the price of soya oil can now test upside levels of Rs 670 / Rs 676 levels over the upcoming few sessions of trade.
We recommend traders to 50% at current levels and again on dips to Rs 661—Rs 659 levels with a stop loss placed below Rs 655.20 levels for initial upside target of Rs 670 and later followed by Rs 676 levels.
MCX COPPER Aug Contract – Technical Outlook & Trading Strategy
The price of Copper was consolidating within a broad range of Rs 438 to Rs 428 levels over the past 3-4 sessions of trade after it witnessed a strong rally from the lows of Rs 399.70 as on 23rd June,2011.But, the key observation to be made is that the price action of copper within this consolidation range was taking the shape of a bullish pennant formation and the price gave a strong breakout backed by robust volumes from the pennant during yesterday’s session.
The Pennant price pattern is a continuation pattern and suggests the stock, has gained momentum for a fresh up move after a small consolidation. The RSI indicator is also trading in bullish mode and the price of copper is also sustaining above its key moving average clusters. Thus the current technical setup augurs well for the future price movements of copper.
We recommend traders to buy 50% at current levels and again on dips to Rs 438.50--Rs 437 levels with a stop loss placed below Rs 433.40 levels upside targets of Rs 444.75 / Rs 447 levels expected to be achieved over the upcoming 3-4 sessions of trade.
The Pennant price pattern is a continuation pattern and suggests the stock, has gained momentum for a fresh up move after a small consolidation. The RSI indicator is also trading in bullish mode and the price of copper is also sustaining above its key moving average clusters. Thus the current technical setup augurs well for the future price movements of copper.
We recommend traders to buy 50% at current levels and again on dips to Rs 438.50--Rs 437 levels with a stop loss placed below Rs 433.40 levels upside targets of Rs 444.75 / Rs 447 levels expected to be achieved over the upcoming 3-4 sessions of trade.
Tuesday, July 19, 2011
MCX Copper Aug CMP— Rs 435.35
Technical Outlook & Trading Strategy:-
The price of Copper has been consolidating within a narrow range of Rs 429 — Rs 438 levels after it witnessed a strong rally from the lows of Rs 399.70 as on 23rd June, 2011.But, the key observation to be made is that the price action of copper within this consolidation is taking shape of a bullish pennant formation.
The Pennant price pattern is a continuation pattern and suggests the stock, has gained momentum for a fresh up move after a small consolidation.A sustained break above the Rs 438 levels will lead to a successful completion of the pattern and one could see the price head towards upside targets of Rs 444.50 / Rs 448 levels.
We recommend traders to buy above Rs 438 levels with a stop loss of Rs 432.20 levels for upside targets mentioned
above.
The price of Copper has been consolidating within a narrow range of Rs 429 — Rs 438 levels after it witnessed a strong rally from the lows of Rs 399.70 as on 23rd June, 2011.But, the key observation to be made is that the price action of copper within this consolidation is taking shape of a bullish pennant formation.
The Pennant price pattern is a continuation pattern and suggests the stock, has gained momentum for a fresh up move after a small consolidation.A sustained break above the Rs 438 levels will lead to a successful completion of the pattern and one could see the price head towards upside targets of Rs 444.50 / Rs 448 levels.
We recommend traders to buy above Rs 438 levels with a stop loss of Rs 432.20 levels for upside targets mentioned
above.
NCDEX Jeera Aug CMP— Rs. 15913.00
Technical Outlook & Trading Strategy:-
As we had been pointing out in our previous daily outlooks, the price of Jeera has now registered a breakout above its neckline resistance level of Rs.15690levels during the previous session of trade.
This augurs extremely well for the future price movements of Jeera. We now expect the price to rally towards the implied targets of the inverted head & shoulders price pattern i.e. towards levels of Rs. 16300 / Rs. 16900 levels over the upcoming few weeks of trade.
Traders who had taken long positions between Rs. 15350 -- Rs. 15500 levels can now take part profits and trail their stoploss to Rs. 15677 levels, whereas traders willing to take fresh long positions can buy 50% at current levels and again on dips to Rs. 15750 — Rs. 15650 levels with a stoploss of Rs. 15497 levels and hold for targets of Rs. 16300 and Rs. 16900 levels.
As we had been pointing out in our previous daily outlooks, the price of Jeera has now registered a breakout above its neckline resistance level of Rs.15690levels during the previous session of trade.
This augurs extremely well for the future price movements of Jeera. We now expect the price to rally towards the implied targets of the inverted head & shoulders price pattern i.e. towards levels of Rs. 16300 / Rs. 16900 levels over the upcoming few weeks of trade.
Traders who had taken long positions between Rs. 15350 -- Rs. 15500 levels can now take part profits and trail their stoploss to Rs. 15677 levels, whereas traders willing to take fresh long positions can buy 50% at current levels and again on dips to Rs. 15750 — Rs. 15650 levels with a stoploss of Rs. 15497 levels and hold for targets of Rs. 16300 and Rs. 16900 levels.
NCDEX SOYAOIL REF. Aug Contract – Technical Outlook & Trading Strategy
The price of Soya oil has been trading in a symmetrical triangle pattern on its weekly charts. A breakout for the symmetrical pattern will be registered when the price will give a sustained move past the Rs. 666.50 levels. Moreover, the recent rise from the levels of Rs. 630-Rs. 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter. We believe that if the price of soya oil registers a sustained break above Rs. 666.50 levels then the immediate upside target for the price of soya oil is Rs. 682 levels. The other positive sign is that the price is also sustaining above its key near term moving average.
We recommend traders to buy on a sustained break above Rs. 666.50 levels with a stop loss placed below Rs. 659.20 levels for initial upside target of Rs. 682 and later followed by Rs. 686.50 levels.
We recommend traders to buy on a sustained break above Rs. 666.50 levels with a stop loss placed below Rs. 659.20 levels for initial upside target of Rs. 682 and later followed by Rs. 686.50 levels.
Monday, July 18, 2011
MCX Copper Aug CMP—Rs 435.00
Technical Outlook & Trading Strategy:-
The price of Copper has been consolidating within a narrow range of Rs 429—Rs 438 levels after it witnessed a strong rally from the lows of Rs 399.70 as on 23rd June, 2011.
But, the key observation to be made is that the price action of copper within this consolidation is taking shape of a bullish pennant formation.
The Pennant price pattern is a continuation pattern and suggests the stock, has gained momentum for a fresh up move after a small consolidation.
A sustained break above the Rs 438 levels will lead to a successful completion of the pattern and one could see the price head towards upside targets of Rs 444.50 / Rs 448 levels.
We recommend traders to buy above Rs 438 levels with a stop loss of Rs 432.20 levels for upside targets mentioned above.
The price of Copper has been consolidating within a narrow range of Rs 429—Rs 438 levels after it witnessed a strong rally from the lows of Rs 399.70 as on 23rd June, 2011.
But, the key observation to be made is that the price action of copper within this consolidation is taking shape of a bullish pennant formation.
The Pennant price pattern is a continuation pattern and suggests the stock, has gained momentum for a fresh up move after a small consolidation.
A sustained break above the Rs 438 levels will lead to a successful completion of the pattern and one could see the price head towards upside targets of Rs 444.50 / Rs 448 levels.
We recommend traders to buy above Rs 438 levels with a stop loss of Rs 432.20 levels for upside targets mentioned above.
NCDEX Jeera Aug CMP—Rs 15432.00
Technical Outlook & Trading Strategy:-
The price action of Jeera since 30th Apr, 2011 is taking the shape of a bullish inverted head & shoulders pattern on its daily charts.
This is an extremely bullish price pattern and this will have a positive effect on the price of
Jeera over the near term to short term.
We expect the price to rally towards the neckline resistance level of Rs 15690 levels in the near term. Once the price gives a sustained breakout above the neckline resistance levels mentioned above the implied targets of the price pattern suggest that the price can rally to levels of Rs 16300 / Rs 16900 levels.
We recommend traders to buy 50% between Rs 15350—Rs 15500 levels and again on dips to Rs 15190—Rs 15100 levels with a stop loss placed below Rs 14889 levels for the near term upside target of Rs 15690 levels.
Once the price registers a sustained breakout/close above the neckline resistance of Rs 15690 levels traders hold their long positions with a revised stop loss of Rs 15273 levels and hold for the implied targets of Rs 16300 / Rs 16900 levels.
The price action of Jeera since 30th Apr, 2011 is taking the shape of a bullish inverted head & shoulders pattern on its daily charts.
This is an extremely bullish price pattern and this will have a positive effect on the price of
Jeera over the near term to short term.
We expect the price to rally towards the neckline resistance level of Rs 15690 levels in the near term. Once the price gives a sustained breakout above the neckline resistance levels mentioned above the implied targets of the price pattern suggest that the price can rally to levels of Rs 16300 / Rs 16900 levels.
We recommend traders to buy 50% between Rs 15350—Rs 15500 levels and again on dips to Rs 15190—Rs 15100 levels with a stop loss placed below Rs 14889 levels for the near term upside target of Rs 15690 levels.
Once the price registers a sustained breakout/close above the neckline resistance of Rs 15690 levels traders hold their long positions with a revised stop loss of Rs 15273 levels and hold for the implied targets of Rs 16300 / Rs 16900 levels.
NCDEX JEERA July Contract – Technical Outlook & Trading Strategy
The key observation to be made on the chart above is that the price of mustard seed was facing
stiff resistance at the downtrend line on every rally from lower levels.
But after 3 attempts the price has registered a sustained breakout above this downtrend line resistance.
Moreover, the breakout has also been on the back of strong surge in volumes, which clearly states that there is active buying interest in the counter.
We believe that the price is now ready for a fresh upmove over the near term to short term and one could see the price head towards upward targets of3010 / 3035 levels.
The fresh buy signal given buy the MACD indicator and a close above the key moving averages also displays strength in the price action.
We recommend traders to buy between Rs 2960—Rs 2940 levels with a stop loss placed below Rs 2899 levels for upside targets of Rs 3010 / Rs 3035 levels expected to be achieved over the upcoming 4-5 sessions of trade.
NCDEX MUSTARD SEED AUG CONTRACT OPEN Rs 2931.00 HIGH Rs 2966.00 LOW Rs 2927.00 CLOSE Rs 2955.00
stiff resistance at the downtrend line on every rally from lower levels.
But after 3 attempts the price has registered a sustained breakout above this downtrend line resistance.
Moreover, the breakout has also been on the back of strong surge in volumes, which clearly states that there is active buying interest in the counter.
We believe that the price is now ready for a fresh upmove over the near term to short term and one could see the price head towards upward targets of3010 / 3035 levels.
The fresh buy signal given buy the MACD indicator and a close above the key moving averages also displays strength in the price action.
We recommend traders to buy between Rs 2960—Rs 2940 levels with a stop loss placed below Rs 2899 levels for upside targets of Rs 3010 / Rs 3035 levels expected to be achieved over the upcoming 4-5 sessions of trade.
NCDEX MUSTARD SEED AUG CONTRACT OPEN Rs 2931.00 HIGH Rs 2966.00 LOW Rs 2927.00 CLOSE Rs 2955.00
Friday, July 15, 2011
MCX Aluminium July CMP—Rs 110.90
Technical Outlook & Trading Strategy:-
The price of aluminium has pulled back to its key resistance zone of Rs 111—Rs 111.50 levels during the previous session after hitting a low of Rs 109.10 levels on 12th July, 2011.
But, the price couldn’t sustain above these resistance zones and this is a clear sign of weakness in the counter.
The Key momentum indicators are in sell mode despite the recent pullback. Thus, with the overall technical structure of aluminium being extremely negative we believe that this is the right opportunity for traders to take fresh short positions in this base metal.
We recommend traders to sell between Rs 110.70--Rs 111.30 levels with a stop loss of Rs 111.95 levels for downside targets of Rs 110 / Rs 109 levels expected to be achieved over the upcoming 1-2 sessions of trade.
The price of aluminium has pulled back to its key resistance zone of Rs 111—Rs 111.50 levels during the previous session after hitting a low of Rs 109.10 levels on 12th July, 2011.
But, the price couldn’t sustain above these resistance zones and this is a clear sign of weakness in the counter.
The Key momentum indicators are in sell mode despite the recent pullback. Thus, with the overall technical structure of aluminium being extremely negative we believe that this is the right opportunity for traders to take fresh short positions in this base metal.
We recommend traders to sell between Rs 110.70--Rs 111.30 levels with a stop loss of Rs 111.95 levels for downside targets of Rs 110 / Rs 109 levels expected to be achieved over the upcoming 1-2 sessions of trade.
NCDEX Turmeric July CMP—Rs 7830.00
Technical Outlook & Trading Strategy:-
The price Turmeric rallied to register a high of Rs 7990 levels as on 12th July, 2011 on the back of a bullish inverted head & shoulders pattern.
Since then the price has corrected and have now pulled back towards its neckline support of Rs 7770 levels.
The recent pullback has been on extremely low volumes which indicate that the price of turmeric hasn’t been under any real supply pressure.
The momentum indicators are still trading in bullish mode. Thus, considering the overall technical factors mentioned above we expect the price to rally to levels of Rs 7960 / Rs 8050 levels over the upcoming sessions.
We recommend traders to between Rs 7750 -- Rs 7860 levels with a stop loss of Rs 7683 levels for upside targets mentioned above.
The price Turmeric rallied to register a high of Rs 7990 levels as on 12th July, 2011 on the back of a bullish inverted head & shoulders pattern.
Since then the price has corrected and have now pulled back towards its neckline support of Rs 7770 levels.
The recent pullback has been on extremely low volumes which indicate that the price of turmeric hasn’t been under any real supply pressure.
The momentum indicators are still trading in bullish mode. Thus, considering the overall technical factors mentioned above we expect the price to rally to levels of Rs 7960 / Rs 8050 levels over the upcoming sessions.
We recommend traders to between Rs 7750 -- Rs 7860 levels with a stop loss of Rs 7683 levels for upside targets mentioned above.
NCDEX JEERA July Contract – Technical Outlook & Trading Strategy
The price of Jeera was in corrective mode since the start of March, 2011 to mid June. Since then
the price has been trading in a broad price band of Rs 15400 to Rs 13300 levels.
But, as outlined in the chart above the key observation to be made is that the price action/pattern within this broad range is taking the shape of a bullish inverted head & shoulders pattern.
This is an extremely bullish price pattern and this will have a positive effect on the price of Jeera over the near term to short term.
The neckline resistance levels for the said pattern is placed at Rs 15240 levels.
We expect the price to rally towards the neckline resistance level of Rs 15240 levels in the near term.
Once the price gives a breakout above the neckline resistance levels the implied targets of the price pattern suggest that the price can rally to levels of Rs 16000 / Rs 16650 levels. The other positive technical factor is the buy signal given by the RSI indicator backed by the positive divergence.
We recommend traders to buy between Rs 14925—Rs 14700 levels with a stop loss placed below Rs 14297 levels for the first upside target of Rs 15240 levels.
Once the price registers a sustained breakout above the neckline resistance of Rs 15240 levels traders can add to their long positions with a revised stop loss of Rs 14853 levels and hold for the above mentioned implied targets.
the price has been trading in a broad price band of Rs 15400 to Rs 13300 levels.
But, as outlined in the chart above the key observation to be made is that the price action/pattern within this broad range is taking the shape of a bullish inverted head & shoulders pattern.
This is an extremely bullish price pattern and this will have a positive effect on the price of Jeera over the near term to short term.
The neckline resistance levels for the said pattern is placed at Rs 15240 levels.
We expect the price to rally towards the neckline resistance level of Rs 15240 levels in the near term.
Once the price gives a breakout above the neckline resistance levels the implied targets of the price pattern suggest that the price can rally to levels of Rs 16000 / Rs 16650 levels. The other positive technical factor is the buy signal given by the RSI indicator backed by the positive divergence.
We recommend traders to buy between Rs 14925—Rs 14700 levels with a stop loss placed below Rs 14297 levels for the first upside target of Rs 15240 levels.
Once the price registers a sustained breakout above the neckline resistance of Rs 15240 levels traders can add to their long positions with a revised stop loss of Rs 14853 levels and hold for the above mentioned implied targets.
Wednesday, July 13, 2011
NCDEX Mustard Seed July CMP— Rs 2842.00
Technical Outlook & Trading Strategy:-
The key observation to be made on the intraday price charts of Mustard seed is that the price has registered an inverted head & shoulders price pattern breakout above its neckline line resistance level of Rs 2840 levels during the previous session.
The formation of this bullish reversal pattern augurs very well for the future price movements of Mustard seed and the price is likely to trade with a positive bias in the near term to short term.
The key momentum indicators are also showing signs of strength in the counter.
We recommend traders to buy between Rs 2845--Rs 2835 levels with a stop loss of Rs 2827 levels for immediate targets of Rs 2865 / Rs 2880 levels expected to be achieved over the upcoming 1-2 sessions of trade.
The key observation to be made on the intraday price charts of Mustard seed is that the price has registered an inverted head & shoulders price pattern breakout above its neckline line resistance level of Rs 2840 levels during the previous session.
The formation of this bullish reversal pattern augurs very well for the future price movements of Mustard seed and the price is likely to trade with a positive bias in the near term to short term.
The key momentum indicators are also showing signs of strength in the counter.
We recommend traders to buy between Rs 2845--Rs 2835 levels with a stop loss of Rs 2827 levels for immediate targets of Rs 2865 / Rs 2880 levels expected to be achieved over the upcoming 1-2 sessions of trade.
MCX Zinc. July CMP—Rs 104.50
Technical Outlook & Trading Strategy:-
The price of Zinc came under some supply pressure and hit a low of RS 102.25 on 11th July, 2011from the highs of RS 107 levels as on 05th July, 2011.
We would like to point out that the RS 102.50 to Rs 101 levels are strong support zone for this base metal.
Yesterday’s smart rebound from these support levels has led to the formation of two bar
bullish reversal pattern on the daily charts,suggesting that the bottom is in place over the near term to short term.
The RSI indicator has also come out of the oversold territory backed by a positive divergence.
We recommend traders to buy 50% at current levels and add to long positions on dips to RS 103.80 — Rs 103.40 levels with a stop loss of RS 102.40 levels for upside targets of Rs 106 / RS 106.75 levels.
The price of Zinc came under some supply pressure and hit a low of RS 102.25 on 11th July, 2011from the highs of RS 107 levels as on 05th July, 2011.
We would like to point out that the RS 102.50 to Rs 101 levels are strong support zone for this base metal.
Yesterday’s smart rebound from these support levels has led to the formation of two bar
bullish reversal pattern on the daily charts,suggesting that the bottom is in place over the near term to short term.
The RSI indicator has also come out of the oversold territory backed by a positive divergence.
We recommend traders to buy 50% at current levels and add to long positions on dips to RS 103.80 — Rs 103.40 levels with a stop loss of RS 102.40 levels for upside targets of Rs 106 / RS 106.75 levels.
NCDEX SOYAOIL REF July Contract – Technical Outlook & Trading Strategy
The price of Soya oil witnessed a corrective move since it rallied to a high of Rs 665.05 levels as on 03 June, 2011.
Since this corrective move,the price of soya oil has been consolidating in a broad range of Rs 630 to Rs 641 levels over the past few weeks of trade.
But, the key observation to be made is that the price has registered a breakout above the neckline resistance levels of Rs 641.50 levels on the back of an inverted head & shoulders price pattern.
This is an extremely bullish price pattern and this will have a positive effect on the price of soya oil over the near term to short term.
The other positive technical factor is the fresh buy signal given by the MACD indicator.
We recommend traders to buy between Rs 644—Rs 639 levels with a stop loss placed below Rs 635.25 levels for upside targets of Rs 650 / Rs 654 levels expected to be achieved over the upcoming 2-3 sessions of trade.
Since this corrective move,the price of soya oil has been consolidating in a broad range of Rs 630 to Rs 641 levels over the past few weeks of trade.
But, the key observation to be made is that the price has registered a breakout above the neckline resistance levels of Rs 641.50 levels on the back of an inverted head & shoulders price pattern.
This is an extremely bullish price pattern and this will have a positive effect on the price of soya oil over the near term to short term.
The other positive technical factor is the fresh buy signal given by the MACD indicator.
We recommend traders to buy between Rs 644—Rs 639 levels with a stop loss placed below Rs 635.25 levels for upside targets of Rs 650 / Rs 654 levels expected to be achieved over the upcoming 2-3 sessions of trade.
Tuesday, July 12, 2011
NCDEX Soya Oil Ref. July CMP—Rs 642.55
Technical Outlook & Trading Strategy:-
The price of Soya oil Ref has registered a close above the neckline line resistance level of Rs 641.50 levels on the back of a bullish inverted head & shoulders price pattern on its daily charts.
This augurs very well for the future price movements of soya oil and the price is likely to trade will have a positive bias in the near term to short term.
The key momentum indicators are showing signs of strength in the counter.
We recommend traders to buy between Rs 641--Rs 643.75 levels with a stop loss of Rs 635.25 levels for targets of Rs 650 /Rs 654 levels expected to be achieved over the upcoming 2-3 sessions of trade.
The price of Soya oil Ref has registered a close above the neckline line resistance level of Rs 641.50 levels on the back of a bullish inverted head & shoulders price pattern on its daily charts.
This augurs very well for the future price movements of soya oil and the price is likely to trade will have a positive bias in the near term to short term.
The key momentum indicators are showing signs of strength in the counter.
We recommend traders to buy between Rs 641--Rs 643.75 levels with a stop loss of Rs 635.25 levels for targets of Rs 650 /Rs 654 levels expected to be achieved over the upcoming 2-3 sessions of trade.
NCDEX Turmeric July CMP—Rs 7718.00
Technical Outlook & Trading Strategy:-
The price of turmeric appears to be taking shape of an inverted head & shoulders pattern with a rising neckline on its intraday charts.This is an extremely bullish price pattern and this will have a positive effect on the price of turmeric over the near term to short term.
The measuring implication of the pattern once the price registers a breakout above the neckline resistance level of Rs 7740 levels suggests that the price can advance to levels of Rs 7850 and/or Rs 7975 levels.The RSI indicator has also given a buy signal backed by a positive divergence.
We recommend traders to buy 50% at current levels and add to long positions as an when the price breaks above the neckline resistance of Rs 7740 levels for the above mentioned implied target levels. A stop loss of Rs 7583 levels should be maintained on all long positions.
The price of turmeric appears to be taking shape of an inverted head & shoulders pattern with a rising neckline on its intraday charts.This is an extremely bullish price pattern and this will have a positive effect on the price of turmeric over the near term to short term.
The measuring implication of the pattern once the price registers a breakout above the neckline resistance level of Rs 7740 levels suggests that the price can advance to levels of Rs 7850 and/or Rs 7975 levels.The RSI indicator has also given a buy signal backed by a positive divergence.
We recommend traders to buy 50% at current levels and add to long positions as an when the price breaks above the neckline resistance of Rs 7740 levels for the above mentioned implied target levels. A stop loss of Rs 7583 levels should be maintained on all long positions.
MCX ALUMINIUM July Contract – Technical Outlook & Trading Strategy
The important observation to be made on the chart above is that the price of Aluminium has registered a Bearish Head & Shoulder breakdown on its weekly charts.This is an extremely bearish price pattern and this will have a negative effect on the price of aluminium over the near term to short term.
The measuring implication of the pattern suggests that the price can decline to levels of RS 105 and/or RS 102 levels.
The Sell signal given by the MACD indicator and a break below the near term moving average support are some of the other technical indicators that confirms the bearish outlook on the price of aluminium.
We recommend traders to sell 50% at current levels and add to short positions as an when the price pulls back to RS 111.00 -- RS 111.75 levels with a stop loss of RS 112.40 levels for immediate downside targets of RS 108.25 / RS 106 levels.
The measuring implication of the pattern suggests that the price can decline to levels of RS 105 and/or RS 102 levels.
The Sell signal given by the MACD indicator and a break below the near term moving average support are some of the other technical indicators that confirms the bearish outlook on the price of aluminium.
We recommend traders to sell 50% at current levels and add to short positions as an when the price pulls back to RS 111.00 -- RS 111.75 levels with a stop loss of RS 112.40 levels for immediate downside targets of RS 108.25 / RS 106 levels.
Monday, July 11, 2011
MCX Aluminium July CMP—Rs 112.40
Technical Outlook & Trading Strategy:-
The price of Aluminium has formed a bearish head & shoulder pattern on its weekly price charts and is trading below its neckline support level of Rs 112.70 levels.
The close registered below the neckline support level mentioned above is an extremely bearish sign and indicates weakness in the counter.
We expect the prices to face stiff resistance between Rs 112.70—Rs 113.25 levels on rallies and this rally can be used by traders to take short positions in the counter.
The momentum indicators are also trading in bearish mode. We recommend traders to sell between Rs 112.70--Rs 113.25 levels with a stop loss of Rs 114.80 levels for targets of Rs 110.55 / Rs 109.50 levels.
The price of Aluminium has formed a bearish head & shoulder pattern on its weekly price charts and is trading below its neckline support level of Rs 112.70 levels.
The close registered below the neckline support level mentioned above is an extremely bearish sign and indicates weakness in the counter.
We expect the prices to face stiff resistance between Rs 112.70—Rs 113.25 levels on rallies and this rally can be used by traders to take short positions in the counter.
The momentum indicators are also trading in bearish mode. We recommend traders to sell between Rs 112.70--Rs 113.25 levels with a stop loss of Rs 114.80 levels for targets of Rs 110.55 / Rs 109.50 levels.
NCDEX Guar Gum July CMP—Rs 11818
Technical Outlook & Trading Strategy:-
The key observation to be made on the intraday price charts of Guar gum is that the price has given a smart breakout above its downtrend line that has been taking shape since 04th July, 2011.
This downtrend line had been acting as stiff resistance whenever the price attempts to breakout above the same.
The breakout registered during the previous session confirms that the prices are now ready for a fresh upmove over the upcoming sessions.
Some of the other positive technical factors are that the prices are trading above all its key averages and the momentum indicators are also in buy mode.
We recommend traders to buy between Rs 11775--Rs 11850 levels with a stop loss of Rs 11707 levels for targets of Rs 11930 / Rs 12075 levels.
The key observation to be made on the intraday price charts of Guar gum is that the price has given a smart breakout above its downtrend line that has been taking shape since 04th July, 2011.
This downtrend line had been acting as stiff resistance whenever the price attempts to breakout above the same.
The breakout registered during the previous session confirms that the prices are now ready for a fresh upmove over the upcoming sessions.
Some of the other positive technical factors are that the prices are trading above all its key averages and the momentum indicators are also in buy mode.
We recommend traders to buy between Rs 11775--Rs 11850 levels with a stop loss of Rs 11707 levels for targets of Rs 11930 / Rs 12075 levels.
NCDEX TURMERIC July Contract – Technical Outlook & Trading Strategy
The price of Turmeric witnessed a corrective move since it rallied to a high of Rs 7972 levels as on 02 July, 2011. Since this corrective move, the price of turmeric has been consolidating in a narrow range of Rs 7700 to Rs 7480 levels over the past few sessions of trade.
But, the key observation to be made is that the price appears to be taking shape of an inverted head & shoulders pattern with a rising neckline.
This is an extremely bullish price pattern and this will have a positive effect on the price of turmeric over the near term to short term.
The measuring implication of the pattern once the price registers a breakout above the neckline resistance level of Rs 7720 levels suggests that the price can advance to levels of rs 7825 and/or rs 7970 levels.
The RSI indicator has also given a buy signal backed by a positive divergence.
We recommend traders to buy 50% at current levels and add to long positions as an when the price breaks above the neckline resistance of Rs 7720 levels for the above mentioned implied target levels.
A stop loss of Rs 7537 levels should be maintained on all long positions.
But, the key observation to be made is that the price appears to be taking shape of an inverted head & shoulders pattern with a rising neckline.
This is an extremely bullish price pattern and this will have a positive effect on the price of turmeric over the near term to short term.
The measuring implication of the pattern once the price registers a breakout above the neckline resistance level of Rs 7720 levels suggests that the price can advance to levels of rs 7825 and/or rs 7970 levels.
The RSI indicator has also given a buy signal backed by a positive divergence.
We recommend traders to buy 50% at current levels and add to long positions as an when the price breaks above the neckline resistance of Rs 7720 levels for the above mentioned implied target levels.
A stop loss of Rs 7537 levels should be maintained on all long positions.
Friday, July 08, 2011
NCDEX Mustard Seed July CMP—Rs 2855.00
Technical Outlook & Trading Strategy:-
The key observation to be made is that the price of mustard seed has registered a bearish head and shoulders breakdown on its intraday charts.
This is a bearish formation and this will have a negative effect on the price of mustard seed over the near term to short term.
The measuring implication of the pattern suggests that the price can decline to levels of Rs 2820 and/or Rs 2790 levels. The momentum indicators are also trading in bearish mode.
We recommend traders to sell between Rs 2860--Rs 2845 levels with a stop loss of Rs 2879 levels for the above mentioned implied target levels.
MCX NICKEL July Contract – Technical Outlook & Trading Strategy
The price of Nickel witnessed a strong up move during the previous session of trade.
The key observation to be made is that the price registered this breakout on the back of a bullish inverted head and shoulders price pattern.
This is a bullish formation and this will have a positive effect on the price of Nickel over the near term to short term.
The measuring implication of the pattern suggests that the price can advance to levels of Rs 1085 and/or Rs 1110 levels.
The MACD indicator has also given a fresh buy signal backed by a positive divergence.
We recommend traders to buy between Rs 1065--Rs 1054 levels with a stop loss of Rs 1040.25 levels for the above mentioned implied target levels.
Thursday, July 07, 2011
MCX Natural Gas July CMP—Rs 190.10
Technical Outlook & Trading Strategy:-
The price of Natural Gas has registered a bearish pennant breakdown on its daily charts after consolidating within a narrow range of Rs 197.80--Rs 188.50 levels over the past few sessions of trade.
The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.
The key momentum indicators are in sell mode and the prices are trading below their key averages.
Traders can look to sell between Rs 189.25—Rs 191.50 levels with a stoploss placed above Rs 195.25 levels and hold for downside targets of Rs 183 /Rs 180 levels.
The price of Natural Gas has registered a bearish pennant breakdown on its daily charts after consolidating within a narrow range of Rs 197.80--Rs 188.50 levels over the past few sessions of trade.
The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.
The key momentum indicators are in sell mode and the prices are trading below their key averages.
Traders can look to sell between Rs 189.25—Rs 191.50 levels with a stoploss placed above Rs 195.25 levels and hold for downside targets of Rs 183 /Rs 180 levels.
NCDEX Pepper July CMP—Rs 26748.00
Technical Outlook & Trading Strategy:-
The price of Pepper witnessed a sharp correction from the highs of Rs 30524 levels to a low of Rs 26920 levels over a span of 3-4 trading sessions.
Since then the price of pepper has been consolidating within a small range of Rs 27650 to Rs 26840 levels.
But, the most important observation to be made on the daily charts of pepper is that it
has registered a Reverse / Bearish Flag pattern breakdown.
The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.
A close below its key moving averages and a sell signal given buy the MACD indicator is also a bearish signal for the future price movement of pepper.
Thus,traders can look to sell between Rs 26850—Rs 26680 levels with a stop loss placed above Rs 27177 levels for downside targets of Rs 26150 / Rs 25900 levels.
The price of Pepper witnessed a sharp correction from the highs of Rs 30524 levels to a low of Rs 26920 levels over a span of 3-4 trading sessions.
Since then the price of pepper has been consolidating within a small range of Rs 27650 to Rs 26840 levels.
But, the most important observation to be made on the daily charts of pepper is that it
has registered a Reverse / Bearish Flag pattern breakdown.
The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.
A close below its key moving averages and a sell signal given buy the MACD indicator is also a bearish signal for the future price movement of pepper.
Thus,traders can look to sell between Rs 26850—Rs 26680 levels with a stop loss placed above Rs 27177 levels for downside targets of Rs 26150 / Rs 25900 levels.
NCDEX MUSTARDSEED July Contract – Technical Outlook & Trading Strategy
The price of Mustard Seed faced heavy selling pressure during the previous session.
But the keyobservation to be made is that the price has registered a bearish head and shoulders breakdown during the previous session.
This is a bearish formation and this will have a negative effect on the price of mustard seed over the near term to short term.
The measuring implication of the pattern suggests that the price can decline to levels of Rs 2820 and/or Rs 2790 levels.
The MACD indicator has also given a sell signal backed by a negative divergence.We recommend traders to sell between Rs 2856--Rs 2840 levels with a stop loss of Rs 2877 levels for the above entioned implied target levels.
NCDEX MUSTARDSEED JULY CONTRACT OPEN Rs 2870.00 HIGH Rs 2878.00 LOW Rs 2844.00 CLOSE Rs 2847.00
But the keyobservation to be made is that the price has registered a bearish head and shoulders breakdown during the previous session.
This is a bearish formation and this will have a negative effect on the price of mustard seed over the near term to short term.
The measuring implication of the pattern suggests that the price can decline to levels of Rs 2820 and/or Rs 2790 levels.
The MACD indicator has also given a sell signal backed by a negative divergence.We recommend traders to sell between Rs 2856--Rs 2840 levels with a stop loss of Rs 2877 levels for the above entioned implied target levels.
NCDEX MUSTARDSEED JULY CONTRACT OPEN Rs 2870.00 HIGH Rs 2878.00 LOW Rs 2844.00 CLOSE Rs 2847.00
Wednesday, July 06, 2011
MCX Aluminium July CMP—Rs 114.00
Technical Outlook & Trading Strategy:-
The price of Aluminium has gone through a sharp correction since it registered a high of Rs 124.15 levels on 03rd May, 2011.
But, the prices of Aluminium witnessed a smart recovery from the lows of Rs 110.85 levels to close at
the Rs 114 levels during the previous session.
We would like to point out that the prices of Aluminium has strong support between the Rs 110.50—Rs 111 levels.
The RSI indicator has also given a fresh buy signal backed by a positive divergence which is also a positive sign for the future price movements of Aluminium.
Traders can go long in this counter on dips to Rs 113.25—Rs 112.50 levels with a stoploss placed below Rs 111.60 levels and hold for upside targets of Rs 114 /Rs 115.25 levels.
The price of Aluminium has gone through a sharp correction since it registered a high of Rs 124.15 levels on 03rd May, 2011.
But, the prices of Aluminium witnessed a smart recovery from the lows of Rs 110.85 levels to close at
the Rs 114 levels during the previous session.
We would like to point out that the prices of Aluminium has strong support between the Rs 110.50—Rs 111 levels.
The RSI indicator has also given a fresh buy signal backed by a positive divergence which is also a positive sign for the future price movements of Aluminium.
Traders can go long in this counter on dips to Rs 113.25—Rs 112.50 levels with a stoploss placed below Rs 111.60 levels and hold for upside targets of Rs 114 /Rs 115.25 levels.
MCX Crude Oil July CMP—`4332.00
Technical Outlook & Trading Strategy:-
The price of Crude oil registered an Inverted head and shoulder price pattern breakout during the previous session.
The price also closed comfortably above the neckline resistance level of Rs 4300 levels.
We expect the price of crude oil to hit upside targets of Rs 4380 / Rs 4430 levels over the upcoming few sessions of trade.
The Rs 4300 to Rs 4280 levels will now act as good support for the price of crude oil on corrections.
We recommend traders to buy 50% at current levels and again on dips to Rs 4295—Rs 4275 levels with a stoploss placed below Rs 4247 levels for the above mentioned targets.
The price of Crude oil registered an Inverted head and shoulder price pattern breakout during the previous session.
The price also closed comfortably above the neckline resistance level of Rs 4300 levels.
We expect the price of crude oil to hit upside targets of Rs 4380 / Rs 4430 levels over the upcoming few sessions of trade.
The Rs 4300 to Rs 4280 levels will now act as good support for the price of crude oil on corrections.
We recommend traders to buy 50% at current levels and again on dips to Rs 4295—Rs 4275 levels with a stoploss placed below Rs 4247 levels for the above mentioned targets.
MCX NICKEL July Contract – Technical Outlook & Trading Strategy
The key observation to be made is that the price of Nickel 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 1052 levels. Upside targets of Rs 1080 / Rs 1100 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 Nickel has also closed above its key moving average clusters and the RSI indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 1052 levels and again on dips to Rs 1042—
Rs 1035 levels for the above mentioned upside targets.
A stop loss of Rs 1026.40 levels should be maintained on all long positions.
MCX NICKEL JULY CONTRACT OPEN Rs 1037.30 HIGH Rs 1045.50 LOW Rs 1028.70 CLOSE Rs 1044.40
and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 1052 levels. Upside targets of Rs 1080 / Rs 1100 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 Nickel has also closed above its key moving average clusters and the RSI indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 1052 levels and again on dips to Rs 1042—
Rs 1035 levels for the above mentioned upside targets.
A stop loss of Rs 1026.40 levels should be maintained on all long positions.
MCX NICKEL JULY CONTRACT OPEN Rs 1037.30 HIGH Rs 1045.50 LOW Rs 1028.70 CLOSE Rs 1044.40
Tuesday, July 05, 2011
MCX Crude Oil July CMP—Rs 4225.00
Technical Outlook & Trading Strategy:-
The key observation that we would like to point out is that the price of Crude oil appears to be forming an Inverted head and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 4300 levels. Upside targets of Rs 4340 / Rs 4375 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 crude oil has also closed above its key moving average clusters on the intraday charts and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 4300 levels for the above mentioned upside targets. A stop loss of Rs 4267 levels should be maintained on all long positions taken above Rs 4300 levels.
The key observation that we would like to point out is that the price of Crude oil appears to be forming an Inverted head and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 4300 levels. Upside targets of Rs 4340 / Rs 4375 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 crude oil has also closed above its key moving average clusters on the intraday charts and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 4300 levels for the above mentioned upside targets. A stop loss of Rs 4267 levels should be maintained on all long positions taken above Rs 4300 levels.
MCX NATURAL GAS July Contract – Technical Outlook & Trading Strategy
The price of Natural gas had registered a channel breakdown on 23rd June, 2011 when it registered a close below the rising trendline which had been acting as good support on corrections.
Since, the breakdown was registered the prices have been trading in a narrow range of Rs 197.50 to Rs 188.50 levels for the past week.
The overall price pattern appears to be taking shape of a Reverse / Bearish Flag pattern.
The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.
A break below the Rs 188 levels will confirm the bearish flag pattern. The MACD indicator is also trading in bearish mode and the prices have closed below their key moving average clusters.
We recommend traders to sell on a break below Rs 188 levels for downside targets of Rs 183.50 /
Rs 181 levels. A stop loss of Rs 193.75 levels should be maintained on all short positions.
Since, the breakdown was registered the prices have been trading in a narrow range of Rs 197.50 to Rs 188.50 levels for the past week.
The overall price pattern appears to be taking shape of a Reverse / Bearish Flag pattern.
The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.
A break below the Rs 188 levels will confirm the bearish flag pattern. The MACD indicator is also trading in bearish mode and the prices have closed below their key moving average clusters.
We recommend traders to sell on a break below Rs 188 levels for downside targets of Rs 183.50 /
Rs 181 levels. A stop loss of Rs 193.75 levels should be maintained on all short positions.
Monday, July 04, 2011
NCDEX Turmeric July CMP—Rs 7830
Technical Outlook & Trading Strategy:-
The price of Turmeric has witnessed a smart recovery from the lows of Rs 7110 levels 17th June, 2011.
Since it recovered from these lows the prices have been taking support at its key moving average clusters on the daily charts and the key momentum indicators are also trading in buy mode and are not showing any signs of weakness.
A break above the near term resistance of Rs 7930 levels will see the price of turmeric rally towards the Rs 8200 and/or Rs 8325 levels.
Thus, traders can look to buy on a break above Rs 7930 levels with a stop loss of Rs 7797 levels for upside targets of Rs 8200/ Rs 8325 levels.
The price of Turmeric has witnessed a smart recovery from the lows of Rs 7110 levels 17th June, 2011.
Since it recovered from these lows the prices have been taking support at its key moving average clusters on the daily charts and the key momentum indicators are also trading in buy mode and are not showing any signs of weakness.
A break above the near term resistance of Rs 7930 levels will see the price of turmeric rally towards the Rs 8200 and/or Rs 8325 levels.
Thus, traders can look to buy on a break above Rs 7930 levels with a stop loss of Rs 7797 levels for upside targets of Rs 8200/ Rs 8325 levels.
MCX Crude Oil July CMP—Rs 4238.00
Technical Outlook & Trading Strategy:-
The key observation that we would like to point out is that the price of Crude oil appears to be forming an Inverted head and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 4300 levels. Upside targets of Rs 4340 / Rs 4375 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 crude oil has also closed above its key moving average clusters on the intraday charts and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 4300 levels for the above mentioned upside targets. A stop loss of Rs 4267 levels should be maintained on all long positions taken above Rs 4300 levels.
The key observation that we would like to point out is that the price of Crude oil appears to be forming an Inverted head and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 4300 levels. Upside targets of Rs 4340 / Rs 4375 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 crude oil has also closed above its key moving average clusters on the intraday charts and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 4300 levels for the above mentioned upside targets. A stop loss of Rs 4267 levels should be maintained on all long positions taken above Rs 4300 levels.
NCDEX SOYAOIL REF July Contract – Technical Outlook & Trading Strategy
The price of Soya oil ref has been trading within broad ranges of Rs 640 to Rs 629.50 levels over thepast few trading sessions, since it witnessed a sharp correction from the highs of Rs 665 levels as on 03rd June, 2011.
The key observation to be made is that the price of Soya oil has formed an Inverted head and shoulder price pattern on the daily charts.
The price has also registered a close above its Neckline resistance of Rs 640.50 levels during the previous session.
This is anextremely positive signal for the price of soya oil ref and we believe that upside targets of Rs 645.50 / Rs 652 levels can be seen in this counter over the upcoming few sessions of trade.
The RSI indicator has also given a buy signal.We recommend traders to buy between Rs 643--Rs 639 levels for the above mentioned upsidetargets. A stop loss of Rs 633.75 levels should be maintained on all long positions.
The key observation to be made is that the price of Soya oil has formed an Inverted head and shoulder price pattern on the daily charts.
The price has also registered a close above its Neckline resistance of Rs 640.50 levels during the previous session.
This is anextremely positive signal for the price of soya oil ref and we believe that upside targets of Rs 645.50 / Rs 652 levels can be seen in this counter over the upcoming few sessions of trade.
The RSI indicator has also given a buy signal.We recommend traders to buy between Rs 643--Rs 639 levels for the above mentioned upsidetargets. A stop loss of Rs 633.75 levels should be maintained on all long positions.
Friday, July 01, 2011
NCDEX Mustard Seed July CMP—Rs2862
Technical Outlook & Trading Strategy:-
The price of Mustard seed appears to be forming an Inverted head and shoulder pattern on the intraday charts.
A breakout from the said pattern would be confirmed when the price breaks above the neckline level of Rs 2878 levels.
The key momentum indicators have also started to display signs of strength.Thus, traders can look to buy on a break above Rs 2878 levels with a stop loss of Rs 2853 levels for upside targets of Rs 2905/ Rs 2925 levels.
The price of Mustard seed appears to be forming an Inverted head and shoulder pattern on the intraday charts.
A breakout from the said pattern would be confirmed when the price breaks above the neckline level of Rs 2878 levels.
The key momentum indicators have also started to display signs of strength.Thus, traders can look to buy on a break above Rs 2878 levels with a stop loss of Rs 2853 levels for upside targets of Rs 2905/ Rs 2925 levels.
MCX Gold Aug CMP—Rs 21904.00
Technical Outlook & Trading Strategy:-
The price of Gold corrected sharply from the highs of Rs 22794 levels as on 22nd June, 2011 to hit a low of Rs 22035 levels on 27th June, 2011.
Since this sharp fall, the price of Gold has been trading in a narrow range of Rs 22175 to
Rs 22045 levels over the past few sessions.
But, the selling pressure witnessed during yesterday’s session took the price of gold below the lower end on this narrow trading range.
Since the short term momentum indicators are in oversold state we expect the price of gold to pullback from current levels and test its resistance placed between Rs 22000—Rs 22050 levels.
But, since the overall technical scenario remains weak we believe that any pullback towards these levels can be used by traders to open fresh short positions.
We advise Traders to sell between Rs 22000--Rs 22050 levels with a stop loss of Rs 22107 levels for downside targets of Rs 21950 / Rs 21890 levels.
The price of Gold corrected sharply from the highs of Rs 22794 levels as on 22nd June, 2011 to hit a low of Rs 22035 levels on 27th June, 2011.
Since this sharp fall, the price of Gold has been trading in a narrow range of Rs 22175 to
Rs 22045 levels over the past few sessions.
But, the selling pressure witnessed during yesterday’s session took the price of gold below the lower end on this narrow trading range.
Since the short term momentum indicators are in oversold state we expect the price of gold to pullback from current levels and test its resistance placed between Rs 22000—Rs 22050 levels.
But, since the overall technical scenario remains weak we believe that any pullback towards these levels can be used by traders to open fresh short positions.
We advise Traders to sell between Rs 22000--Rs 22050 levels with a stop loss of Rs 22107 levels for downside targets of Rs 21950 / Rs 21890 levels.
MCX CRUDE OIL July Contract – Technical Outlook & Trading Strategy
The price of Crude oil has been trading within broad ranges of Rs 4075 to Rs 4300 levels over the past few trading sessions.
The key observation to be made is that the price of Crude oil appears
to be forming an Inverted head and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 4300 levels. Upside targets of Rs 4340 / Rs 4375 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 crude oil has also closed above its key moving average clusters on the intraday charts and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 4300 levels for the above mentioned upside
targets. A stop loss of Rs 4267 levels should be maintained on all long positions taken above
Rs 4300 levels.
The key observation to be made is that the price of Crude oil appears
to be forming an Inverted head and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 4300 levels. Upside targets of Rs 4340 / Rs 4375 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 crude oil has also closed above its key moving average clusters on the intraday charts and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 4300 levels for the above mentioned upside
targets. A stop loss of Rs 4267 levels should be maintained on all long positions taken above
Rs 4300 levels.
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