Pepper to trade with negative bias: Sharekhan

Sharekhan has come out with its report on Pepper. The research firm expects pepper to trade with a negative bias for a target of Rs 33820, which is a crucial swing low. The reversal of the bearish stance is placed above the crucial resistances at the 20 and 40-DMA’s.

According to NCDEX Pepper April contract chart, pepper has broken down from an upward sloping channel. On a longer time frame it has faced resistance at the 20-weekly simple moving average. It is currently trading below the 20-and 40-daily moving averages (DMA’s) i.e. Rs36,308 and Rs36,910 respectively, which are crucial resistances for the agri-commodity in the short-term.

The momentum indicators have a negative crossover, which indicates a bearish bias. Considering all the above factors we expect pepper to trade with a negative bias for a target of Rs 33,820, which is a crucial swing low. The reversal of the bearish stance is placed above the crucial resistances at the 20-and 40-DMA’s.

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