Short NCDEX cottonseed oilcake futures by admin- Tuesday, November 22nd, 2022 07:23:53 AM
The continuous futures contract of cottonseed oilcake (COCUDAKL) on the National Commodity and Derivatives Exchange (NCDEX) could see a clean fall from the modern levels as it seems to have hit a roadblock.
Although it has been on a rally in view that October this 12 months after bouncing off ₹2,230, the wider fashion remains bearish. By closing at ₹2,679 final week, it has misplaced almost 14 consistent with cent yr-to-day until November 18.
Besides, there’s a confluence of resistances. Last week, it fell off the barrier at ₹2,835 in which the 50-week transferring average (WMA) and the 50 in step with cent Fibonacci retracement stage of the previous fall coincide. Also, the weekly candlestick chart shows a formation of an inverted hammer pattern ultimate week, indicating a capacity bearish reversal.
In addition, there has been large drop in the open hobby (from 44,040 contracts on October 31 to 36,2 hundred on November 18), displaying longs are being unwound as the expectancy of the agreement rallying past the hurdle at ₹2,835 fades.
Considering these factors, the modern degrees could be an amazing place to initiate fresh shorts on NCDEX cottonseed oil cake futures. On the drawback, it’s miles possibly to retest ₹2,450 before the stop of this yr.
Go brief on NCDEX-Cocudakl futures now at around ₹2,690 and add greater shorts while it rises to ₹2,750. Place preliminary stop-loss at ₹2,875. When the settlement slips under ₹2,580, tighten the prevent-loss to ₹2,720. Book earnings at ₹2,450.