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Wednesday, August 10, 2011

NCDEX Chana Aug CMP—Rs 2968.00

Technical Outlook & Trading Strategy:-

The price of Chana has been on a sustained uptrend over the past couple of months. But, the price of Chana has now registered a breakdown after forming a bearish head and shoulder pattern with a declining neckline support placed at the Rs 3032 levels.

This breakdown can now bring in a pause in the recent uptrend witnessed in the prices of Chana and it can correct to levels of 2925 / 2900 levels.

We recommend traders to sell 50% at current levels and 50% on rallies to Rs 3000--Rs 3015 with a stop loss placed above Rs 3037 levels for downside targets mentioned above.

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