NCDEX Soybean was oscillating about the key daily moving averages for several weeks. In terms of the price patterns, the agri-commodity formed a triangular pattern, which broke out on the upside in March. Since the breakout the commodity was marching towards north in a channelised manner. However near the end of April it broke lower end of the channel and entered correction mode. The fall is breaking up into the lower degree waves. On the downside, a medium-term rising trendline will be the key level to watch out for. Once the key support zone of Rs 3,775-3,755 breaks, target on the downside will be Rs 3,585. The daily momentum indicator is in line with the price action. On the other hand, Rs 3,970 - 4,000 will act as a crucial resistance zone on a closing basis.
