Monday, 25 March 2013

NCDEX Chana to trade with negative bias

According to NCDEX Gram chana April contract chart. We can observe that Gram chana was trading in an upward sloping channel, which has broken on the downside. It faced resistance around the 40-daily exponential moving average and has seen sharp sell-off from those levels.

In the last trading session it broke the crucial support placed at the 20-daily simple moving average (DSMA) ie., Rs 3,380.  The daily momentum indicators have a negative crossover and it is also trading below the 20-and 40-daily moving averages. We expect the agri-commodity to trade with a negative bias for a target of Rs 3,286, which is the previous swing low. The reversal of the bearish stance is placed above the 20-DSMA ie., Rs 3,380.

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