The price of Soya oil has been trading in a symmetrical triangle pattern on its weekly charts. A breakout for the symmetrical pattern will be registered when the price will give a sustained move past the Rs. 666.50 levels. Moreover, the recent rise from the levels of Rs. 630-Rs. 632 has been on the back of steady rise in volumes, which is an indication of buying interest in the counter. We believe that if the price of soya oil registers a sustained break above Rs. 666.50 levels then the immediate upside target for the price of soya oil is Rs. 682 levels. The other positive sign is that the price is also sustaining above its key near term moving average.
We recommend traders to buy on a sustained break above Rs. 666.50 levels with a stop loss placed below Rs. 659.20 levels for initial upside target of Rs. 682 and later followed by Rs. 686.50 levels.
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