After the first leg of the fall, ie. from Rs766.9 to 674, NCDEX refined soy oil formed a pullback. The wave structure shows that it was a complex corrective structure. In terms of Fibonacci retracement the pullback retraced nearly 78.6% of the fall. The agri commodity is now set for the next leg down. The daily momentum indicator is also showing a negative divergence. Unless the key Fibonacci retracement (Rs748) is crossed on a closing basis the targets on the downside are Rs674 (the low) and Rs654 (the equality target).
