Following a strong 7 per cent gain on Monday, the short-term outlook for the Coriander (Symbol: DHANIYA) futures contract traded on the National Commodity & Derivatives Exchange (NCDEX) has turned bullish.

The contract has conclusively breached a key short-term resistance at ₹5,700 per quintal as well as 200- and 50-day moving averages on that session.

Moreover, this rally has strengthened the medium-term uptrend that has been in place since taking support at around ₹4,350 in early October 2017.

However, the contract had encountered a key resistance at ₹5,700 and was on a sideways movement with a positive bias until Monday. The recent gap-up rally of 7 per cent on Monday has reinforced the medium-term uptrend but any corrective declines in the contract can find support either at ₹5,700 or at ₹5,460 in the short-term. The contract surged another 1.3 per cent on Tuesday and was trading at ₹5,925 a quintal.

The daily and weekly price rate of change indicators are hovering in positive terrain indicating buying interest. Moreover, the daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region.

Both the short- and medium-term trends are up for the contract. It can extend the uptrend and reach the short-term price targets of initial target of ₹6,000.

An emphatic break above ₹6,000 will further strengthen the uptrend and take the contract northwards to ₹6,250 and ₹6,500 levels in the short- to medium term horizon.

Traders with a short- to medium-term perspective can buy the contract in dips while maintaining a stop-loss at ₹5,700 levels.

Key resistances above ₹6,500 are placed at ₹6,700 and ₹7,000. Supports below ₹5,460 are at ₹5,300 and ₹5,000.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

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