MCX Potato has been in an uptrend. However the rally seems to have matured at least from the short-term perspective. It has recently formed an ending diagonal. The last leg of the pattern has got truncated and the price has broken on the downside. It has done a minor degree pullback and is geared for the next leg down. The daily momentum indicator is showing a negative divergence and has triggered a bearish crossover. This will accelerate the price action on the downside. The target on the downside is the medium-term rising trendline ie Rs1,010. The reversal has been placed above the high of Rs1,111.Potato: Structure becomes weak
MCX Potato has been in an uptrend. However the rally seems to have matured at least from the short-term perspective. It has recently formed an ending diagonal. The last leg of the pattern has got truncated and the price has broken on the downside. It has done a minor degree pullback and is geared for the next leg down. The daily momentum indicator is showing a negative divergence and has triggered a bearish crossover. This will accelerate the price action on the downside. The target on the downside is the medium-term rising trendline ie Rs1,010. The reversal has been placed above the high of Rs1,111.