Buy MCX Mentha oil Aug Future around Rs 1383: Way2Wealth

Mentha Oil has completed its wave II of wave 3/C up which has an equality target of 1486 and the conservative target for wave III of 3/C is 1460. On the lower side the recent low becomes the crucial support and till that is held the upside target shall be achieved swiftly. It has also surpassed the downtrend line resistance which further confirms that a fresh leg up has ensued.

On the momentum front, the daily MACD has come into buy mode again and has crossed the zero reference line on the upside, whereas, the weekly MACD is expected to provide a buy crossover.

So, the strategy is to initiate longs at cmp 1383 for an initial target of 1460 and above that 1486 with a stop loss at 1320.

Strategy: Mentha oil August MCX

• Buy 1 lot of MCX Mentha oil August Futures around Rs 1383
• In the event of adverse movement, exit below 1320 (loss of Rs.22,680)
• First Target of 1460 and above that 1486 (profit of Rs.27,720- Rs.37,080)
• Time frame: 1 month
• Risk Reward Ratio: ~ 1: 1.6(22,680 / Rs.37,080)