Recent developments hint a retest to 800 in Menthaoil

MENTHAOIL September contract has been trading in a nice down trend and closed at 852 levels. A nice consolidation seen in this commodity among key support of 850 and resistance of 880 but couldn’t confirm any clear breakout during the consolidation. Today commodity has broken the key support of this range that qualifies a potential bearish flag and hitting a decline towards 800 zones in coming days. Next possible supports are 843 and then at 834 any sustained move below 830 levels would bring 807 on cards. Resistance is now seen at 870 and then at 880 any established move with closing above 880 may negate the validity of this pattern.

Recommendation: Selling Mentha oil on jumps around 854-859 for target 835-808 with invalidation of 880 might be appropriate.

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