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Soya oil: Correction mode

Adjacent chart shows price movement of NCDEX soya oil continuous contract. Structurally the oil formed a multimonth triangle, which broke out on the upside. From there the oil rallied nicely. The up move got over at 682.70. From there the agri-commodity has entered correction mode. The daily momentum indicator is in bearish mode. A minor degree bounce faced resistance near the key daily moving averages (DMAs). Thus the next leg down is expected to start off, which can target Rs621-615.5. on the flip side, Rs652-657 is a key resistance zone on a closing basis.
 



NCDEX jeera is moving up in a channelised manner since the beginning of February. It has formed a channel within a channel. The move that has started from the March low has now reached near a crucial resistance zone. This leg has achieved 161.8% of the equality target and retraced 78.6% of the previous fall. It has also halted near upper ends of both the channels. The short-term momentum indicator has been stretched to the overbought zone. Thus the agri commodity can go for a correction. Rs16,670-16,625 will be the key area on the downside. On the higher side, Rs17,670-18,185 will act as a key resistance area.



Adjacent chart shows the price movement of NCDEX soya oil continuous contract. Structurally, the oil formed a multi month triangle, which broke out on the upside. Since then the oil rallied nicely. However the up move looks complete at Rs 682.70. From there the agri-commodity has entered short-term correction mode. The daily momentum indicator is showing negative divergence and has given a fresh sell signal. Thus soya oil can come down to test the daily lower Bollinger Band, ie Rs 635.
 



Adjacent chart shows price movement of NCDEX turmeric continuous contract. From the high of Rs 10,660, the agri-commodity had entered correction mode. The fall is breaking up into the lower degree waves. Recently turmeric broke out from a falling channel and formed a pullback. The bounce faced resistance near the multiple hurdles. From there turmeric has started falling once again. The daily momentum indicator is poised for a new cycle on the downside. Rs 7,815-7,475 will be the key levels on the downside from short- to medium-term perspective. On the other hand, Rs 8,632-8,700 will act as a key resistance zone.

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