The crude palm oil (CPO) continuous futures contract on the Multi Commodity Exchange of India (MCX) took a temporary support at ₹1,125 recently. It has rebounded and gained 1.3 per cent at ₹1,144.5 per 10 kg on Thursday.
In June this year, the contract found support in the band between ₹965 and ₹975 and resumed its long-term uptrend. The uptrend has been in place after it recorded a low of ₹567 in May 2020 . Since June, the contract has been on a medium-term uptrend. But, it met with a key hurdle at ₹1,200 in the past week and began to decline.
With the uptrend, the contract has been moving sideways over the past two months in the band between ₹1,120 and ₹1,200. The daily as well as the weekly indicators are hovering in the neutral region. A conclusive breakout on either side of ₹1,120 and ₹1,200 range is needed to determine the short-term trend. A strong rally beyond the immediate resistance level of ₹1,160 can take the contract to ₹1,200 in the near term.
A decisive breakthrough of ₹1,200 can strengthen the medium-term uptrend and take the contract to ₹1,250 and then to ₹1,300 in the medium-term. But a fall below ₹1,120 can alter the medium-term uptrend and drag the contract to ₹1,050 initially and then to ₹1,000 over the medium-term. Traders can wait and take fresh long positions on a break above ₹1,160 levels with a fixed stop-loss.
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.