Commodity Calls

NCDEX Coriander breaks a key resistance

Yoganand D BL Research Bureau | Updated on April 03, 2019 Published on April 03, 2019

The NCDEX Coriander (Symbol: DHANIYA) futures contract surged almost 4 per cent on Wednesday to ₹7,144 per quintal. The contract appears to have decisively breached the key medium-term resistance at ₹6,800 and managed to stay above ₹7,000.

Both the medium as well as short-term trends are up for the contract. It found support at around ₹4,200 in June 2018 and changed direction. Since then, the contract has been in an intermediate-term uptrend.

Last October, the contract had conclusively breached the 200-day moving average and a vital resistance at ₹5,200 and continued to trend upwards. As long as the contract trades above the key base level of ₹6,200 the short-term uptrend will remain up.

The contract hovers well above its 21- and 50-day moving averages. The daily and the weekly relative strength indices feature in the bullish zone, backing the uptrend. Moreover, the price rate of the change indicator hovers in positive terrain, implying buying interest.

Any corrective decline can find support at ₹6,800 initially and then at ₹6,550. A decisive fall below these supports can drag the contract down to ₹6,400 and ₹6,200 levels.

Going forward, the contract can encounter resistance at ₹7,300. A strong break above this level can take it higher to ₹7,500 and then to ₹7,650 in the short to medium term.

Traders with a short-term perspective can buy the contract with a stop-loss at ₹6,800. Subsequent key resistances beyond ₹7,650 are at ₹8,000 and ₹8,300.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

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