The price of Mustard seed witnessed a strong rally once it gave a breakout above the down
trendline resistance as outlined in the above chart.
Since then, the price of mustard seed has been consolidating in a very narrow range over the past few sessions of trade and this consolidation is now taking shape of a Bullish Pennant formation on the daily charts.
A breakout from the Pennant price pattern is a continuation pattern and suggests that the Index/commodity/stock price, has gained momentum for a fresh up move after a small consolidation.
The breakout in case of mustard seed will be registered once the price moves above the Rs 3010 levels on a sustained basis.
Some of the other positive technical factors are that the prices have been sustaining above its key moving average clusters and the MACD indicator is also trading in bullish mode.
We recommend traders to buy 50% on a sustained break above the Rs 3010 levels and again of
dips to Rs 2995--Rs 2980 levels with a stop loss placed below Rs 2959 levels for upside targets of
Rs 3055 / Rs 3073 levels.
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