NCDEX Soybean seed April contract may trade bearish: Kotak Commodity Services
Published on Wednesday, March 10th, 2010 at 10:27 AMAuthor: onlinecommoditycalls (1985 Articles)
`NCDEX Soybean seed April contract has shown a negative trend for past four months and today breached at Rs 2,020 (contract low) has confirms further bearishness. This breach was important as it would now give momentum to the price to test the long term channel support (S) at Rs 1,909 – 1,855,“ said Dharmesh Bhatia, senior technical analyst, Kotak Commodity Services.
“Technically lower top lower bottom pattern has been formed and since the previous low has breached, price has the potential for further downside till Rs 1909, in next few trading sessions. Volume and Open Interest have also increased considerably, thus we maintain our bearish stance and any rise should be seen as a selling opportunity,“ he added.
Strategy: Go short targeting Rs 1,909 – 1,855 with the stop loss closing above Rs 2,119.
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