The price of RM seed have been trending up over the past 2-3 months of trade since it recoveredfrom 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 2945--Rs 2930 levels with a stop loss placed above Rs 2977 levels for downside targets of Rs 2890 / Rs 2860 levels.
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