SHUBHLAXMI NCDEX

Tug of war between bulls and bears continues in soya bean

The adjoining chart is a weekly chart of NCDEX soya bean. We can observe that soya bean broke the trading range on the upside and it rallied smartly towards the crucial resistances. For the past five weeks, it has been oscillating around the crucial resistances. Last week we saw the agricommodity gave a positive weekly close and also closed above the resistance line (shown in blue colour). On a shorter time frame, we can observe that the agricommodity is consolidating in a range and has taken shape of a triangle, which has been broken on the upside. It faced resistance at the daily upper Bollinger Band and corrected once again. This indicates indecision among the market participants. The weekly momentum indicator has a positive crossover and reached the equilibrium line, which completes the pullback cycle. Our view on the agricommodity remains bearish and we expect soya bean to trade weak going ahead. Our targets on the downside are placed at Rs2,866, which is the weekly lower Bollinger Band. the stop loss should be trailed to Rs3,698, which is the 61.8% retracement level of the fall from Rs4,276 to Rs2,838.

Jeera is tumbling down

Jeera

The adjoining chart is a weekly chart of NCDEX jeera October contract. We can observe that jeera had formed an impulse on the downside. It retraced up to the 20- daily simple moving average and faced severe selling pressure at the crucial resistance. The weekly momentum indicator has given a negative crossover which indicates that every rise should be sold into. Currently it is trading near the lower end of the bearish flag pattern. Also a crucial medium term rising trend line (shown in blue colour) is providing it support. We expect the flag pattern to break on the downside with a target of Rs11,500 in the coming weeks. Our initial target placed at the weekly lower Bollinger Band has already been achieved. The stop loss should be placed at Rs13,800, which is the weekly upper Bollinger Band.

Soya bean to see a tug of war between bulls and bears

Soya Been

The adjoining chart is a weekly chart of NCDEX Soya bean. We can observe that soya bean broke the trading range on the upside and rallied smartly towards the crucial resistances. It has faced resistance at the 20- and 40-weekly moving average. Last week the agricommodity gave a positive weekly close. However, it was unable to surpass the crucial moving averages. On a shorter time frame we can observe that the agricommodity is consolidating in a range and has taken the shape of a triangle. We expect this consolidation to break on the downside. It has also faced resistance at the wnward sloping trendline (shown in blue colour) which will act as a key resistance going ahead. The weekly momentum indicator bears a positive crossover and we feel it will touch the equilibrium line which completes the pull-back cycle. Our view on the agri-commodity remains bearish and we expect soya bean to trade weak going ahead. Our target on the downside is placed at Rs2,845, which is the weekly lower bollinger band. The stop loss should be trailed to Rs3,698, which is the swing’s high.

Bearish outlook for mentha oil

Mentha Oil

The adjoining chart is of MCX mentha oil October contract. We can observe that mentha oil was trading in a range in the past few trading sessions. The range has been broken on the downside. It is currently trading below the 20- and 40-daily moving averages. The daily momentum indicators have a negative crossover. We expect mentha oil to trade weak in the coming trading sessions. We expect the targets of Rs841, which is the daily lower Bollinger Band, and below that Rs830, which is the previous swing’s low. The reversal of the bearish stance is placed above Rs890, which is the swing’s high.