Jul 12, 2012, 08.23 AM | Source: Moneycontrol.com
Way2Wealth has come out with its special report on Mentha oil. According to the research firm, one can buy 1 MCX Mentha oil July Futures above Rs 1298 for the time frame of 1 month.
Mentha Oil slips from the Bears
One of highly volatile and risky commodity in MCX platform has decline to exactly 78.6% retracement level of the entire rise from 811-2570. It had fallen unidirectional way in last 2 months without any significant pullback. Now, it is time to watch the price action on the reverse direction. Interestingly, on the daily charts too, it has reversed from 78.6% retracement zone of the rise from 1148-1441. Also, yesterday’s pullback confirms that bulls have an upper hand over bears confirmed by huge volume participation supports the bullish momentum.
RSI-14 period is pointing neutral zone by giving an upside crossover is also one of another aspect for supporting the bullish momentum.
According to Elliott wave count, recently mentha oil prices have completed its corrective wave structure of A-B-C pattern in the form of an expanding flat at 1148 levels after making an historical high of 2564 levels. Now there are two alternates:
A) 1st intermediary wave has completed at 1441 levels after which the recent fall is the corrective wave 2 which has formed a bottom at 1208 levels and as mentioned above that it has tested 78.6% Fibonacci retracement levels of 1st wave. Now, 3rd intermediary wave shall commence which will eventually break the recent high of 1441 levels and is likely to extend the rally towards the equality target of 1530 levels. The minimum target of this is its previous swing high of 1460.
B) It is not a start of a new uptrend. In that case too it will have a wave C pullback which has similar targets mentioned above.
Strategy: Mentha oil July MCX:
To read the full report click here