The price of Soya oil ref has been trading within broad ranges of Rs 640 to Rs 629.50 levels over thepast few trading sessions, since it witnessed a sharp correction from the highs of Rs 665 levels as on 03rd June, 2011.
The key observation to be made is that the price of Soya oil has formed an Inverted head and shoulder price pattern on the daily charts.
The price has also registered a close above its Neckline resistance of Rs 640.50 levels during the previous session.
This is anextremely positive signal for the price of soya oil ref and we believe that upside targets of Rs 645.50 / Rs 652 levels can be seen in this counter over the upcoming few sessions of trade.
The RSI indicator has also given a buy signal.We recommend traders to buy between Rs 643--Rs 639 levels for the above mentioned upsidetargets. A stop loss of Rs 633.75 levels should be maintained on all long positions.
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