The short-term outlook is bullish for the Coriander (Symbol: DHANIYA) futures contract traded on the National Commodity & Derivatives Exchange (NCDEX).
Traders with a short-term perspective can buy the contract at current levels. Since taking support at around ₹8000 per quintal, the contract has been trending upwards.
The short-term trend has been up for the contract since recording a low at ₹6039 in mid Jan 2016. The contract breached its 21- and 50- day moving averages while trending up.
Yesterday, it jumped 4 per cent, conclusively near an immediate resistance at ₹8365 to close at ₹8050. This bullishness extended on Today as well and the contract surged another 2.70 per cent to trade at ₹8440.
The contract has emphatically breached a key resistance point at ₹8365.
Both the daily and weekly price rate of change indicators are in positive terrain implying buying interest. The daily relative strength index is in the bullish zone backing the ongoing uptrend.
The contract can continue its short-term uptrend and test the key resistance in the band between ₹8,900 and ₹9200.
A decisive break-out from this barrier can take the contract up towards ₹9850 in the short to medium term. Traders can buy with a stop-loss at ₹8000. The key immediate support is at ₹8000.
A conclusive fall below this level can find supports at ₹7,600
Weekly close above 8400 will take to 8900---9200+ mark in days to come.
Support and stop loss below 8000 on closing basis.
