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.
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