NCDEX SOYABEAN– FEB Contract (CMP `2538)
Technical Outlook & Trading Strategy:-
The key observation to be made on the price chart of Soyabean is that the price movement is taking the shape of a bearish Head & Shoulders pattern. This is an extremely bearish price pattern with negative implications for future price movements in the near term to short term. We expect the prices to correct to 2470 – 2450 levels in the near term.
The RSI indicator is also in sell mode.
Keeping in mind the above observations we recommend traders to sell at current levels and again on highs to 2550—2555 for near term targets of 2490 – 2470 levels. A near term stop loss of 2576 is advisable on all short positions.