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Tuesday, August 23, 2011

NCDEX Guarseed Sept. CMP—Rs 4442.00

Technical Outlook & Trading Strategy:-

The price of Guarseed has come out of a narrow trading range on the back of an inverted head & shoulders price pattern breakout.

The upmove witnessed during the previous session was on the back of strong surge in volumes
which is a sign of buying interest in the counter.

The price has also registered a close above its near term moving average clusters, and the momentum indicators have also given a buy signal.

We recommend traders to buy 50% now and on dips to Rs 4390--Rs 4360 levels with a stoploss placed below Rs 4347 levels for upside targets of Rs 4530 / Rs 4560 levels, expected to be achieved over the upcoming 2-3 sessions of trade.

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