NCDEX Chana charts all time low strong support at 3427

By in Technical Analysis on February 5, 2013

By John Godson

NCDEX Chana had a bearish week as the indicators show a negative trend in the oversold territory. Higher import expectations from Australia have reflected the future chana trading.

The flag pattern shows sharp decline from December onwards. Since the commodity is in the oversell territory, investors are looking to trade on a correction. The flag may break on a weak as the commodity has reached the all time low in 52 weeks.

Chana trades well below the 20 day SMA at 3540.5 and 50 day SMA at 3577.3, the commodity lies below the Bollinger levels and the slow stochastic level also implies the bearishness to be carried onto the future. The MACD at -9.38, RSI at 37.58 has weak trend going on.  Strong Support is now seen at 3427 Rs/qtl.

S1: 3427         S2: 3410
R1: 3475         R2:3505
Trend: Bearish


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