The price of RM seed had been trending up over the past 2-3 months of trade since it recovered
from its lows of Rs 2640 levels as on 19th Apr, 2011.
The Ascending trendline outlined in the chart above had been providing strong support for the price of RM seed on every correction from higher levels.
But, the recent swing high from the ascending trendline which registered a high of Rs 2985 levels as on 30th Aug, 2011 could only manage to register a lower top on the daily charts.
Moreover, the selling pressure witnessed during the previous session of trade has now dragged
the price below the trendline support on a closing basis.
This is an extremely bearish development and one could now see the price of RM seed trading
with a negative bias over the upcoming few sessions of trade.
We recommend traders to sell between Rs 2890--Rs 2902 levels with a stop loss placed above Rs 2933 levels for downside targets of Rs 2860 / Rs 2845 levels expected to be achieved over the upcoming 3-5 sessions of trade.
NCDEX RM SEED SEP. CONTRACT OPEN Rs 2915 HIGH Rs 2918 LOW Rs 2887 CLOSE Rs 2894
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