The key observation to be made on the chart above is that, the prices of Jeera has been taking
resistance on every pullback at the declining trendline that has been taking shape since 25th
July,2011.
On the previous two occasions, the prices have witnessed a sharp fall after it took resistance at the above mentioned trendline.
Some of the other negative developments in this counter are the sell signal given buy the RSI indicator backed by a negative divergence and the prices have also closed below its key moving average clusters.
Thus, we believe that sustenance below the trendline resistance will see the prices of Jeera decline towards Rs 15270 / Rs 15150 levels over the upcoming sessions of trade.
We recommend traders to sell between Rs 15525--Rs 15625 levels with a stop loss placed above
Rs 15823 levels for downside targets mentioned above.
NCDEX JEERA SEPT CONTRACT OPEN Rs 15811.00 HIGH Rs 15874.00 LOW Rs 15520.00CLOSE Rs 15564.00
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