The adjoining chart is a weekly chart of NCDEX Soya bean. We can observe that soya bean broke the trading range on the upside and rallied smartly towards the crucial resistances. It has faced resistance at the 20- and 40-weekly moving average. Last week the agricommodity gave a positive weekly close. However, it was unable to surpass the crucial moving averages. On a shorter time frame we can observe that the agricommodity is consolidating in a range and has taken the shape of a triangle. We expect this consolidation to break on the downside. It has also faced resistance at the wnward sloping trendline (shown in blue colour) which
will act as a key resistance going ahead. The weekly momentum indicator bears a positive crossover and we feel it will touch the equilibrium line which completes the pull-back cycle. Our view on the agri-commodity remains bearish and we expect soya bean to trade weak going ahead. Our target on the downside is placed at Rs2,845, which is the weekly lower bollinger band. The stop loss should be trailed to Rs3,698, which is the swing’s high.