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.
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