Mentha oil prices slipped in futures trade on Tuesday as muted demand by consuming industries at spot markets weighed on the commodity.
Speculators trimmed positions in mentha oil futures due to a fall in demand from consuming industries at the spot market against adequate supplies from key producing regions.
Around 11:15 am, MCX Mentha oil was at Rs 1,346 per kg, down by Rs 3.90, or 0.29 per cent.
Fundamentally, mentha oil is facing pressure due to the expectation of an increase in supply. However, market participants point out that an improvement in export demand for the commodity may take the commodity’s prices higher.
On technical charts, Rs 1,365 appears to be a key level.
“Mentha oil has immediate support at Rs 1,335 and below this, it has next support at Rs 1,290. Once the price sustains above Rs 1,365, one should go for buy on dip strategy,” said Romesh Tiwari, Head Of Research, CapitalAim.
On the daily charts, the commodity has tested the resistance at Rs 1,360, while MACD is showing buy signal on the same chart. RSI is also looking strong, now placed at 61.68 levels. It has resistance at Rs 1,365 and an above this, it would find its next resistance at Rs 1,390, Tiwari added.
Source: Economic Times