Commodity Call: Cottonseed oilcake futures can see corrective rally by admin- Thursday, April 28th, 2022 07:10:10 AM
Traders with higher hazard urge for food can recall quick-term longs
The non-stop futures contract of cottonseed oilcake (COCUDAKL) at the National Commodity and Derivatives Exchange (NCDEX) broke below the essential help band of ₹3,000-three,0.5 ultimate week and prolonged the decline. It made a low of ₹2,800 on Monday and has bounced off a piece to the present day level of ₹2,860.
The charge degree of ₹2,800 is support where a rising trendline also coincides, making it a key stage. Although the overall bias appears to be bearish, the settlement might witness a corrective rally in the direction of the fee band of ₹3,000-three,half.
However, this isn’t always a given and so, chance-averse investors can live away from longs and keep away from countertrend calls. It is well worth noting that the downtrend will maximum possibly resume after the settlement moves as much as the above-cited fee band.
Consider clean longs
Considering the above factors, investors with a higher risk urge for food can recollect sparkling longs. But notice that it is a brief-time period alternate and so, keep on with the stop-loss and goal ranges strictly. That is, purchase at the current level of ₹2,860 and location forestall-loss at ₹2,780.
When the contract surpasses ₹2,740 move the forestall-loss upward to ₹2,840. Liquidate the longs whilst the contract hit ₹3,000. Fresh trades henceforth can be determined primarily based on how the agreement reacts to the fee band of ₹3,000-3015.