MEDIUM TERM TECHNICAL CALL 11/11/2010
Pepper made a all time high in Nov 2010 at 22249 and after a corrective is expected to cross the high and move up further.
20400-19970- (19250-18900).Strong move will not breach 20400.
After breaking out above 22250 and trading above for few sessions Two Consecutive Close Below 18900.
In 2005 the commodity was trading in 6000-7500 price moves.
The up move started in 2006 and the commodity made a high of 14950 in Sept.
Profit booking followed and the commodity corrected its rise, making a bottom at 10355 in Dec 2006.
A new High followed at 16456 in April 2007 and thereafter the commodity went in to consolidation phase.
Selling pressure in Sept 2008 forced the commodity to breach the previous low of 10355, making a new low at 9775 in Jan 2009.
Buying emerged thereafter and the commodity hasn’t looked back thereafter and till date the low of 9775 is not breached.
A series of higher bottom formation happened and the commodity made a new high of 21719 in July 2010.
In last 4 to 5 months the commodity gained from 12447 to 21719 with substantial volumes.
Recently after correcting till 18041 in Oct 2010 the commodity again made a new high at 22249 in Nov 2010 which shows continuation and the strength of buying interest.
A move above 22300 will add to the upside momentum in the commodity.
Supports are at 20400-19970- (19250-18900).Strong move will not breach 20400.
The Recent 200 DMA as of now stands at 18000 and the commodity has never breached the 200 DMA at any point of time after breaking out in March 2010.
The trend Indicator shows presence of strong up trend.
After trading above 22250 for few sessions ,two consecutive closes below 18900 negates the above view.
A commodity to watch for immediate volatile up move above 22250 for fast returns.