The following chart is of MCX mentha oil October contract.Mentha oil has been correcting sharply for the past few trading sessions. Currently it is trading near its crucial support zone placed around Rs1,140 and Rs1,160. We expect mentha oil to hold near the crucial support zone. The momentum indicators have a negative crossover indicating some downside in the agri commodity. Thus, as soon as we get a positive daily close one should go long for the targets of Rs1,236, which is the area of wave 4,
and Rs1,266, which is the 20-daily simple moving average.The reversal of the bullish stance is placed below the crucial support of Rs1,140.
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.
