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Friday, August 05, 2011

NCDEX Mustard Seed Aug CMP— Rs 2967.00

Technical Outlook & Trading Strategy:-

The price of Mustard seed has made a double top formation on its daily charts and fell sharply from a high of Rs 3003 levels during the past two sessions of trade.

The double bottom formation is also backed by a negative divergence in the RSI indicator. Thus, all of the above technical evidence is suggesting a trend reversal.

Hence, we recommend traders to sell 50% at current levels and again between Rs 2983—Rs 2988 levels with a stop loss placed above Rs 3010 levels for an initial downside target of Rs 2944 and further downsides towards the Rs 2910 levels.

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