Menthol after the sell off we have seen from last one week yesterday we have seen market consolidating above 570 level still overall trend is weak and we are targeting 560-554 level in short time span. Some profit booking and short covering can be seen that can be utilized for creating fresh short position in the market of 580-582 level. Yesterday February contract gained Rs 1.1 and settled at Rs 571.3 a kg. The contract made intraday low of Rs 569.1 a kg and high of Rs 577.8 a kg. Now support for the menthol is seen at 567.60 and below could see a test of 564.00. Resistance is now likely to be seen at 576.30, a move above could see prices testing 581.40.

Trading Ideas:

Menthol trading range is 565-580.

Mentha oil spot is at 656/-.Spot is down by Rs.5/-.

Resistance for Mentha oil is at 576.30.

Mentha oil is getting support at 567.60.

Mentha oil yesterday ended up on short covering.

SELL MENTHOL FEB @ 571-572 SL 578 TGT 568.80-565.50-561.50.MCX