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.
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