NCDEX Chana after creating a contract high of Rs 5,262 is in a consolidating phase ranging Rs.4,000-4,667 since past three months forming a symmetrical triangle pattern (R,S), with lower top and higher bottom formation on it. However, the price has recently broken down of the triangle support line at Rs 4,315 level indicating bearish momentum, said Dharmesh Bhatia, associate vice president - research, Kotak Commodities Services.
''The 9-period RSI has also showing down trend and is sustaining well above the 50 mark which indicates negative momentum. Further, if the price continues to hold below at Rs.3,350 level, an down move till Rs.4,194-4,150 levels could be possible,'' he opined.
Strategy - Go short at cmp 4,285 on rise towards Rs 4,315 target of Rs 4,194/4,150 with stop loss (closing below) - Rs 4,369 level.
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.