Cottonseed oilcake can fall further by admin- Tuesday, September 21st, 2021 07:51:56 AM
It has began to expose symptoms of weak spot and even though it made a higher high in August
The continuous futures settlement of cottonseed oilcake (COCUDAKL) on the National Commodity and Derivatives Exchange (NCDEX) has been transferring northwards on the grounds that the beginning of this 12 months.
In February, it broke out of the critical level of ₹2,000 and the rally endured and marked a sparkling excessive of ₹three,2 hundred in August. But the contract had started to show signs and symptoms of weakness and although it made a higher excessive in August, signs like the relative energy index (RSI) and the shifting average convergence divergence (MACD) on the daily chart were showing negative divergence.
In line with this, the futures made a U-flip ultimate month and began to fall. It invalidated the rising trendline, a bearish indication and slipped under the key assist at ₹2,800.
The price action is sending out bearish signal and similarly decline is notably probably. But one must be aware of RSI and MACD, which is hovering near over-sold ranges and there has now not been any corrective rally over the path of fall. So, the settlement ought to see a jump from the modern levels of ₹2,420-2,500 ranges before extending the downward movement. Hence, buyers can wait and provoke brief on rallies i.E., around ₹2,500.
Place stop-loss at ₹2,600 – a key resistance in which 50 per cent Fibonacci retracement stage of previous rally coincides. On the downside, the contract is likely to drift closer to ₹2,230, a assist level. Subsequent assist may be spotted at ₹2,one hundred seventy.