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Friday, September 30, 2011

NCDEX Turmeric Oct CMP—Rs 4566.00

Technical Outlook & Trading Strategy:-

The price of turmeric has been in a strong downtrend since the past 1year and the prices have gone through severe correction.

But, the first technical factor that signals a near term to short term reversal in the trend is that the momentum indicators are giving a buy signal.

Secondly, the price has registered a close above its 8day moving average which had been acting as stiff resistance on every pullback and finally the steady rise in volumes signal a reversal.

We recommend day / positional traders to take long positions between Rs 4600--Rs 4520 levels with a stop loss placed below Rs 4449 levels for upside targets of Rs 4725 / Rs 4850 levels expected to be achieved over the upcoming 2-3 sessions of trade.

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