Articles by "RM Seed"

Showing posts with label RM Seed. Show all posts

The adjacent chart shows the price movement of NCDEX RM seed 2-month contract. It was moving up for last several sessions. However it faced resistance near the upper channel line. From there it has entered a correction mode. The daily momentum indicator that had been stretched to the overbought zone has triggered bearish crossover. On the downside junction of 20-day moving average and the lower channel line ie Rs.3,950 and Rs3,935 will be the key area to watch out for. On the other hand, Rs4,093 and Rs4,110 will act as a key resistance zone

The adjoining chart is of NCDEX RM seed October contract. We can observe that RM seed was trading in an upward sloping channel which broke on the downside. It took support at the 40-daily exponential moving average (DEMA), ie Rs3,475. In the last trading session it closed above the 20-daily simple moving average. We expect RM seed to trade with a positive bias going ahead for the target of Rs3,667, which is the daily upper Bollinger Band and above that we expect the agri-commodity to test its previous high of Rs3,700. The reversal of the bearish stance is placed below the Rs3,489, which is the 40-DEMA

NCDEX RM Seed is trading in a long-term rising channel.It recently overshot the upper channel line twice; however it couldn’t sustain there. The daily as well as the weekly momentum indicators didn’t support the breakout as they both were showing negative divergence. The daily momentum indicator has triggered a bearish crossover. In terms of wave structure RM Seed has formed the first leg of the fall and has bounced thereon. In the last session it formed an inside bar, which is a beginning of the next leg down. Thus unless the high of Rs3,989 is crossed the agri-commodity is expected to undergo a correction. The key levels on the downside are equality target (Rs3,700) and 61.8% retracement of the previous rally (Rs3,530).

Author Name

Contact Form


Email *

Message *

© All Rights Reserved 2008-2009,Shubhlaxmi Investments. Powered by Blogger.