Go short on NCDEX chana futures by admin- Friday, May 21st, 2021 08:28:40 AM
Outlook turns terrible; prevent-loss placed at ₹5,320
The non-stop futures agreement of chana on the National Commodity and Derivatives Exchange (NCDEX), which has had an excellent yr to date, is going through a downtrend of past due.
After registering a excessive of ₹5,896 in mid-April, the contract has been slipping.
Though it tried to get better in early May at the back of the support at ₹5,300, bulls could not collect sufficient momentum and again fell after dealing with resistance at ₹5,540.
But this time, the guide at ₹five,300 become breached on Tuesday and the June settlement closed at ₹five,191, turning the trend downwards.
The settlement has shaped lower excessive and lower low, a bearish sign. The price is now beneath the 50-day moving average (DMA).
Other signals putting forward the weak outlook are indicators like the relative energy index (RSI) and the moving average convergence divergence (MACD) at the every day chart. While the previous has slipped beneath the mid-factor level of 50, the latter indicates that the bears are having an higher give up the bulls.
Traders can take bearish view and go short on NCDEX chana futures on rallies with stop-loss at ₹five,320.
The nearest guide is the crucial charge band of ₹four,950 and ₹five,000. The 61.8 in line with cent retracement degree of the previous rally lies at ₹four,950, making it a key base.
A breach of this level can drag the contract to ₹four,850.