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.
No comments:
Post a Comment