On a weekly time frame, NCDEX Dhaniya (Nov) future has given breakout of Symmetrical Triangle pattern and again retested the upper band of the pattern with Hammer candlesticks , which indicates a bullish set-up in the counter. In addition, the price has also been trading above the 50 Exponential Moving Averages&Ilchimoku Cloud, which suggest bullish strength. Moreover, the indicator MACD also indicates the long position with positive crossover.Furthermore the RSI indicator has also sustained above 50 levels& the trend indicator Parabolic SARalso indicated a Bullish trend.Hence, based on above technical structure one can initiate a long position in NCDEX Dhaniya (Nov) future at CMP 8190 ora fall in the price till 8050 levels can be used as buying opportunity for the upside target of 9400 . However, the bullish view will be negated if NCDEX Dhaniya (Nov) future close below the support level of 7500.
On the daily chart, MCX Cotton (Oct) future has been rising continuously with Higher Highs and Higher Lows formation. Theprice has also given breakout ofBullish flag pattern which supports the upward trend.In addition, Spurt in volume has been noticed in last two trading sessions, which point-out positive trend for the near term.Moreover,the price has settled above the upper Bollinger Band which suggests bullish strength.Furthermore, the indicator MACD also indicates the long position with positive crossover. However, ona four hourly chart, amomentum indicator RSI (14) is at 80 levels, the overbought zone which indicatesome profit booking in the near future.Hence, based on above technical structure we are recommending buy on dip strategy in MCX Cotton (Oct) around 26400 or a fall in the price till 26200 levels, that can be used as buying opportunity for the upside target of 27750. However, the bullish view will be negated if MCX Cotton (Oct) future close below the support level of 25700.
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