Technical Outlook & Trading Strategy:-
We reiterate our bullish bias on Pepper. The prices of Pepper have been taking support at the rising trendline that has been taking shape since 14th Mar, 2010 on its weekly charts.
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 30900 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 prices of pepper have also witnessed a smart bounce back from this trendline support during the previous week of trade.
We believe that the prices of pepper can now rally towards its recent highs of Rs 30900 levels and sustenance above the same will open up upside targets of Rs 31300--Rs 31675 levels.
The RSI indicator has also given a fresh buy signal. We recommend traders to buy 50% atcurrent levels and again on dips between Rs 30050--Rs 29950 levels with a stop loss placed below Rs 29589 levels for upside targets of Rs 30900 / Rs 31300 / Rs 31675 levels, expected to be achieved over the upcoming 3-4 sessions of trade.
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