Indoagri – Poise to test it highs again ?

Trend: Uptrend, 20ma Up, MacD above 0

Support: 2.34 (20ma), 2.16 (50 & 100ma close)

Resistance: 2.56, 2.72

Observations:
Candlestick – Black inverted hammer formed
Histogram – Many R. No Bearish divergence
RSI – Around 50% No Bearish divergence
Stochastic – Going to form Bullish crossover. Oversold.
Bollinger Band – Trading at mid band.

Conclusion:
Indoagri retraced recently as oil prices retreated from its highs. This retracement could be an opportunity to look at the long side as the trend remains uptrend. There is no bearish divergence seen in Indoagri, hence, there is no need to exercise caution like the rest of the counters.
Currently it is now trading at a strong support level of 2.34 and could indicate a good level to go on the long side. A bullish inverted hammer might indicate the lost of bearish momentum but more confirmation is need as the candle is still a black candle. Hence, upside confirmation should come from indicators.
We should wait for an appearance of a white candle and bullish signals from either Macd Histogram or Stochastic before we look at the long side.

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