The price of Soya oil witnessed a corrective move since it rallied to a high of Rs 665.05 levels as on 03 June, 2011.
Since this corrective move,the price of soya oil has been consolidating in a broad range of Rs 630 to Rs 641 levels over the past few weeks of trade.
But, the key observation to be made is that the price has registered a breakout above the neckline resistance levels of Rs 641.50 levels on the back of an inverted head & shoulders price pattern.
This is an extremely bullish price pattern and this will have a positive effect on the price of soya oil over the near term to short term.
The other positive technical factor is the fresh buy signal given by the MACD indicator.
We recommend traders to buy between Rs 644—Rs 639 levels with a stop loss placed below Rs 635.25 levels for upside targets of Rs 650 / Rs 654 levels expected to be achieved over the upcoming 2-3 sessions of trade.
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