SHUBHLAXMI NCDEX

The adjacent chart shows price movement of NCDEX cottonseed oilcake January contract. In last few sessions the agri-commodity has formed a short-term correction. It has taken support near the key daily moving averages. From there the commodity seems to have started next leg on the upside. The daily momentum indicator is in bullish mode. Once the swing’s high of Rs1,436 is crossed the price can head up till Rs1,453 and Rs1,487. On the other hand, Rs1,396 and Rs1,390 will act as a key support zone

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.