By Dharmesh Bhatia
NCDEX Chana after creating a contract high of Rs 5262 is in a consolidating phase ranging Rs.4000-4667 since past three months forming a symmetrical triangle pattern (R,S), with lower top and higher bottom formation on it. However, the price has recently broken down of the triangle support line (S) at Rs.4315 level indicating bearish momentum.
The 9-period RSI has also showing down trend and is sustaining well above the 50 mark which indicates negative momentum. Further, if the price continues to hold below at Rs.3350 level, an down move till Rs.4194-4150 levels could be possible.
(The author is Associate Vice President -Research at Kotak Commodities)