NCDEX RM Seed is trading in a long-term rising channel.It recently overshot the upper channel line twice; however it couldn’t sustain there. The daily as well as the weekly momentum indicators didn’t support the breakout as they both were showing negative divergence. The daily momentum indicator has triggered a bearish crossover. In terms of wave structure RM Seed has formed the first leg of the fall and has bounced thereon. In the last session it formed an inside bar, which is a beginning of the next leg down. Thus unless the high of Rs3,989 is crossed the agri-commodity is expected to undergo a correction. The key levels on the downside are equality target (Rs3,700) and 61.8% retracement of the previous rally (Rs3,530).

MCX mentha oil in the last few months had run up sharply. After achieving multiple equality targets the commodity has formed a channelised correction. The correction found support at the crucial support zone of the 40-daily exponential moving average and the daily lower Bollinger Band. From the support junction mentha oil has formed a higher top higher bottom, which is a sign of beginning of an up trend. It has crossed the 20-daily moving average. The channel breakout level is Rs2,330. The targets beyond that are Rs2,564.8 and Rs2,735. The reversal can be assumed below the low of Rs2,021.

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