The following chart is of NCDEX soy oil April contract. We can observe that soy oil has faced resistance at the 20- daily simple moving average (DSMA) and sold off from
there. It has broken its previous swing low and the fall has been extended. The momentum indicators have a negative crossover and soy oil is also trading below the crucial daily averages. Thus we expect the agri commodity to trade with a negative bias for the target of Rs644 on the downside, which is the previous swing low. The reversal can be trailed at Rs681, the 20-DSMA.
