The key observation to be made on the chart above is that, the prices of Pepper has been taking
support at the rising trendline that has been taking shape since 14th Mar,2010.
This trendline has been providing strong support for the prices of pepper on every correction from higher levels.
The recent correction from the highs of Rs 30999 levels as on 08th May, 2011 was also on the back of declining volume which is a clear indication that the prices weren’t under any real supply
pressure.
The, key moving average clusters are also providing good support for the price of pepper. Thus, we believe that sustenance above the trendline support will see the prices of pepper rally towards the Rs 30525 / Rs 30950 levels over the upcoming sessions of trade.
The RSI indicator has also given a fresh buy signal and this lends support to the bullish price set up.
We recommend traders to buy 50% at current levels and again on dips between Rs 29500--Rs 29375 levels with a stop loss placed below Rs 29077 levels for upside targets of Rs 30525 / Rs 30950 levels, expected to be achieved over the upcoming 3-4 sessions of trade.
NCDEX PEPPER AUG. CONTRACT OPEN Rs 28725.00 HIGH Rs 29870.00 LOW Rs 28725.00
CLOSE Rs 29870.00
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