Comments
The continuous futures contract of cottonseed oilcake (COCUDAKL) on the National Commodity and Derivatives Exchange (NCDEX) has rallied from about ₹1,600 in early September last year. With occasional price moderation, the futures counter has been gained since then and in early April this year, it crossed over a crucial resistance at ₹2,500. The uptrend looks steady and is likely to stay so.
The May futures contract — that was moving in a range between ₹2,250 and ₹2,460 — broke out of the range in the first week of the current month. While it continued to rally post the breakout, the contract was facing a hurdle at ₹2,780 in the past few trading sessions. But on Tuesday, it breached this resistance and was hovering around ₹2,800.
The price action is inclined to upside and corroborating the positive bias, indicators like the relative strength index and the moving average convergence divergence on the daily chart remain in the positive territory and yet there is not slowdown in rally observed. Also, the average directional index shows that the bulls have a clear advantage over the bears and the contract has been consistently forming higher highs and higher lows. Moreover, the price is well above the 21- and 50-day moving averages, indicating a strong momentum.
Traders can be positive and initiate fresh long positions in NCDEX-COCUDAKL May futures with stop-loss at ₹2,700. On the upside, the contract can rise to ₹2,950 and possibly touch ₹3,000 in the near-term.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.