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The continuous futures contract of cottonseed oilcake (COCUDAKL) on the National Commodity and Derivatives Exchange (NCDEX) was largely moving in a broad range in last year. On the upside, the price band of ₹2,000 and ₹2,050 prevented the bulls from extending the rally.
The contract saw a considerable correction wherein the price reached ₹2,410. Since 50 per cent Fibonacci retracement level of the prior trend and the 50-day moving average (DMA) coincided at ₹2,410, the contract found a support at the price level. While it resumed its upward movement in May, it slowed down after reaching ₹2,960 levels. Notably, the price area of ₹2,960 and ₹3,000 is a resistance band. Even though there was a correction, the contract rebounded from ₹2,650 with sufficient momentum to breach ₹3,000-mark last week.
Traders can buy cottonseed oilcake futures (August series) with stop-loss at ₹2,960. Potential target can be at ₹3,240.
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