Mentha Oil has completed its wave 2/B and has ensued wave 3/C up which has a minimum target of 1480 i.e. above its previous swing high which is almost 23.6% retracement of the five wave declining pattern from 2564-1148. Above 1480 the next target is 1555 which is the high of wave 4.Mentha oil has provided an upside breakout which is also confirmed by the channel breakout on the daily charts.
On the momentum front, the daily RSI (14) has come into buy mode thus making the higher high and also confirming the price up move. The daily MACD on the Aug contract has also come into buy mode signaling a trend reversal.
So, the strategy is to initiate longs at CMP 1300 from an initial target of 1480 and above that 1555 with a stop loss at 1220.
Strategy: Mentha oil August MCX
- Buy 1 lot of MCX Mentha oil August Futures around 1300
- In the event of adverse movement, exit below 1220 (loss of Rs28, 800)
- First Target of 1480 and above that 1555 (profit of Rs64, 800- Rs91, 800)
- Time frame: 1-2 months
- Risk Reward Ratio: 1 : 2.25(28,800 / Rs64,800)
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- Mentha Oil Futures: Investors are advised to take fundamental positional 'buy' call
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- MCX Mentha oil: Selling pressure in the offing
- Short-term opportunity: Sell MCX Mentha Oil
- MCX Mentha oil: Medium term bullish
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