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.
The adjoining chart is of NCDEX Cotton seed oil cake April contract. We can observe that cotton seed has seen a sharp run-up after breaking out of a triangle. We expect this momentum to continue upto Rs1,568, which is the daily upper Bollinger Band, and Rs1,586, which is the previous swing high. The momentum indicators have a positive crossover. The reversal can be trailed to Rs1,524, which is the 40-hourly exponential moving average.
