The price of Turmeric witnessed a corrective move since it rallied to a high of Rs 7972 levels as on 02 July, 2011. Since this corrective move, the price of turmeric has been consolidating in a narrow range of Rs 7700 to Rs 7480 levels over the past few sessions of trade.
But, the key observation to be made is that the price appears to be taking shape of an inverted head & shoulders pattern with a rising neckline.
This is an extremely bullish price pattern and this will have a positive effect on the price of turmeric over the near term to short term.
The measuring implication of the pattern once the price registers a breakout above the neckline resistance level of Rs 7720 levels suggests that the price can advance to levels of rs 7825 and/or rs 7970 levels.
The RSI indicator has also given a buy signal backed by a positive divergence.
We recommend traders to buy 50% at current levels and add to long positions as an when the price breaks above the neckline resistance of Rs 7720 levels for the above mentioned implied target levels.
A stop loss of Rs 7537 levels should be maintained on all long positions.
No comments:
Post a Comment