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Thursday, July 07, 2011

NCDEX Pepper July CMP—Rs 26748.00

Technical Outlook & Trading Strategy:-

The price of Pepper witnessed a sharp correction from the highs of Rs 30524 levels to a low of Rs 26920 levels over a span of 3-4 trading sessions.

Since then the price of pepper has been consolidating within a small range of Rs 27650 to Rs 26840 levels.

But, the most important observation to be made on the daily charts of pepper is that it
has registered a Reverse / Bearish Flag pattern breakdown.

The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.

A close below its key moving averages and a sell signal given buy the MACD indicator is also a bearish signal for the future price movement of pepper.

Thus,traders can look to sell between Rs 26850—Rs 26680 levels with a stop loss placed above Rs 27177 levels for downside targets of Rs 26150 / Rs 25900 levels.

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