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
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