By admin       2018-04-04

A breakout on either side of the current ₹19,300-21,300 range will decide the next trend. But the bias on the chart is bullish. The 21-week moving average has crossed over the 55- and 100-week moving averages. This is a bullish signal indicating that the downside could be limited in the short-term. The 21-week moving average has been providing strong support since February and has been limiting the downside well. All these indicators on the charts suggests that the contract is likely to breach the current range above ₹21,300 and extend its up move in the coming weeks. A strong break and a decisive weekly close above ₹21,200 will be the first sign of bullishness. An eventual break above ₹21,300 can take the contract higher to ₹21,500 initially. Further break above ₹21,500 will then increase the likelihood of the contract targeting ₹23,000 over the medium- to long-term. High risk appetite traders with a medium- and long-term perspective can go long at current levels and accumulate on dips at ₹20,000 and ₹19,850. Stop-loss can be placed at ₹19,700 for the target of ₹22,300. Revise the stop-loss higher to ₹20,850 as soon as the contract moves up to ₹20,250. The outlook for the contract will turn negative only if it records a decisive weekly close below ₹19,800. The next targets are ₹19,500 and ₹19,300. But such a strong fall looks unlikely at the moment. Note: The recommendations are based on technical analysis and there is a risk of loss in trading.

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