Soya oil: Correction mode

Adjacent chart shows price movement of NCDEX soya oil continuous contract. Structurally the oil formed a multimonth triangle, which broke out on the upside. From there the oil rallied nicely. The up move got over at 682.70. From there the agri-commodity has entered correction mode. The daily momentum indicator is in bearish mode. A minor degree bounce faced resistance near the key daily moving averages (DMAs). Thus the next leg down is expected to start off, which can target Rs621-615.5. on the flip side, Rs652-657 is a key resistance zone on a closing basis.

NCDEX jeera is moving up in a channelised manner since the beginning of February. It has formed a channel within a channel. The move that has started from the March low has now reached near a crucial resistance zone. This leg has achieved 161.8% of the equality target and retraced 78.6% of the previous fall. It has also halted near upper ends of both the channels. The short-term momentum indicator has been stretched to the overbought zone. Thus the agri commodity can go for a correction. Rs16,670-16,625 will be the key area on the downside. On the higher side, Rs17,670-18,185 will act as a key resistance area.

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