The adjoining chart is of NCDEX gram chana October contract. We can observe that gram chana was trading in an upward sloping channel which broke on the downside. For the past few trading sessions it has been trading in a sideways manner. Our sense is that it is forming a triangle and we expect it to break on the upside. The daily momentum indicator has been oscillating around the equilibrium line which is in sync with the price action. So the strategy to trade gram chana is to buy on decline near the Rs3,000 level which is the daily lower Bollinger Band for the targets of Rs3,240, which is the swing’s high and above that we expect Rs3,400, which is the weekly upper Bollinger Band. The reversal of the bullish stance is placed below Rs2,875, which is the 50% retracement of the rise.

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