Soybean broke out from the triangle on the upside and rallied towards the previous highs. It halted there for a week and ultimately surpassed the hurdle of Rs2,824 and Rs2,826. The breakout occurred along with high volumes. Consequently the agri-commodity achieved and even surpassed both the equality targets. Though the momentum indicators are in an overbought territory they are holding strong and unless weakness is seen in the price action the rally is likely to continue. From medium-term perspective 161.8% retracement mark (Rs3,580) and upper end of the rising channel (Rs3,830) will be the targets. On the other hand, Rs3,146 will be the reconsideration level.
MCX Potato has been in an uptrend. However the rally seems to have matured at least from the short-term perspective. It has recently formed an ending diagonal. The last leg of the pattern has got truncated and the price has broken on the downside. It has done a minor degree pullback and is geared for the next leg down. The daily momentum indicator is showing a negative divergence and has triggered a bearish crossover. This will accelerate the price action on the downside. The target on the downside is the medium-term rising trendline ie Rs1,010. The reversal has been placed above the high of Rs1,111.
