The overall scenario suggesting that ongoing uptrend is again going through the phase of consolidation and bulls are expected to come back in their action.
Rudra Shares and Stock Brokers
As expected, the bulls reclaimed lost ground and the minor dip in USD/INR was bought into. Even though the currency pair has closed with the loss of 42 paise on a weekly basis, the short term base is still intact.
Last week, the fall in prices was arrested at 50-day exponential moving average and formed Bullish Engulfing candlestick pattern at lower levels. Apart from this, the prices have also respected the support range of gap area at 71.10 levels.
USD/INR (spot) Daily
The new short term base is emerging at 71.10 and currency pair is likely to trade in the range of 71.10 and 72.30 with positive bias in the coming days. RSI on the daily chart is trading in the sideways territory with positive curve and ADX is also suggesting that the uptrend is still intact. On the intraday chart, the currency pair seems to abate its correction. After a decline, the prices are showing the bounce back and trading above the middle line of the Bollinger band.
The overall scenario suggests that ongoing uptrend is again going through the phase of consolidation and bulls are expected to come back in their action. In such trading setup, traders can go Long in USD/INR futures at 71.73 and hedge the positions Put Option of 71.25 can be bought simultaneously at 0.0225 of equal quantity. Profit can be booked at higher levels in the range of 73.3 to 72.5.Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.