The price of Soya Oil Ref witnessed a sharp correction from the highs of Rs 665 levels to a low of Rs 647.30 levels over a span of 3-4 trading sessions.
Since then the price of soya oil has been consolidating within a small range of Rs 647 to Rs 655 levels.
But, the most important observation to be made on the intraday charts of Soya oil is that it has registered a Reverse / Bearish Flag pattern breakdown as shown in the chart above.
The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.
A close below its key moving averages and a sell signal given buy the stochastic indicator is also a bearish signal for the future price movement of Soya Oil.
Thus, traders can look to sell between Rs 647.50—Rs 652 levels with a stop loss placed above Rs 655.30 levels for downside targets of Rs 644.25 / RS 642 levels.
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