Technical check: Why castor seed chart appears bullish in the short term

On the Daily Chart, Castor Seed (May) has breached out of its “Ichimoku Cloud”, which confirms bullish momentum.

Moreover, price has bounced back from the 50 percent Retracement Level of its prior rally which will support prices in the near term.

Furthermore, the 20*50 Days SMA (Simple Moving Average) has made a positive crossover, which suggests a upward move in the counter.

Also, Momentum indicator Stochastic (6) has formed a positive crossover, which confirms power in the hands of the bulls.

Additionally, RSI (14) has breached above the 50 level which signals bullish presence in the counter.

Based on the above technical structure, we suggest a bullish movement in NCDEX Castor Seed (May) towards the level 4420 in the near term.

(The author is Executive Director, Choice Broking)