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Friday, October 14, 2011

COMMODITIES TO WATCH 14th Oct


NCDEX Soya Oil Ref Nov CMP—Rs 594.65

Technical Outlook & Trading Strategy:-
The price of Soya Oil ref witnessed a pullback from oversold levels during the past 2-3 sessions of trade. The fall witnessed during the previous sessions has led to the formation of a 2-bar bearish reversal pattern on the daily charts. This is a sign that the price can now test is recent lows. The momentum indicators continue to trade in bearish mode despite the recent pullbacks.

We recommend traders to take short positions between Rs 593.90--Rs 596 levels with a stop loss placed above Rs 599.40 levels for downside targets of Rs588 / Rs 582 levels expected to be achieved over the upcoming 3-4 sessions of trade.

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