Shubhlaxmi Commodity

The adjacent chart shows price movement of NCDEX Soy Bean continuous contract. It has been trading in a sideways trend since past few months. It is possibly forming a triangle pattern wherein it has reached lower end of the triangle. The NCDEX Soy Bean has formed a ‘doji’ candlestick pattern which is a potential sign of halt in the current down move. Also, it has addition support of the lower end of the triangle and Bollinger band. Moreover it has multiple supports in the zone of Rs 2992 – 2980. If it manages to hold the support zone then a bounce towards Rs 3132 – 3200 is possible. The momentum indicator is sell mode. Close eye must be kept on NCDEX Soy Bean contract as a good move can be expected in the coming trading sessions.

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.