Commodity Check : Jeera

JC Parets
April 8, 2022

We're back with another commodity post in the Commodity Check series. Today we're highlighting a commodity that had quite a meteoric rise since November 2021. In February this year, we saw the price consolidate sideways. But guess what? We have a breakout!

Let me give you another hint. It's another Agri commodity.

Did you guess it yet?

Jeera is the Commodity to check out today!

Just take a look at that chart. The price is trading at all-time highs. What jumps out at you from the chart is the big base breakout that we're looking at. The indicator is supporting this breakout. So definitely bullish momentum there. But look a little closer and you'll notice something else.

Did you catch that yet?

Click on the chart to zoom in.

Let's first look at the price action close to the breakout level of 18,250. There was a strong bullish candlestick followed by a quick run up towards the target of 22,360.

Now, look at the price action at the breakout level of 22,360. You'll see that the price made it above the breakout level last week. But the candlestick of this week's closing is a Doji. This indicates indecision. Based on the price movement in the future, this could either be just another doji formation, or a spinning top candlestick pattern.

Now the other point of observation (not a concern, just observation so far) is the momentum. We can see that the momentum is not nearly close to the previous peak in the indicator. So that's another point to consider.

But all said and done, a breakout is a breakout until proven otherwise. And a price consolidation above a crucial level is always a positive.

We are bullish above the breakout level of 22,360 with a target close to 28,485.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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