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Soybean: Arrived at the ‘Eleventh Hour’
Soybean December BUY
CMP: Rs 2927 (As on 02nd Nov 2017)
Buy: Rs 2927 & add more above Rs 3000
Targets: Rs 3290-3400 Soybean
Stop loss: < Rs 2800 the changing picture was foreseen by momentum
indicators like RSI and MACD which registered
Due to its high oil content and more popular use as positive divergences on a couple of occasions. Now,
a source of vegetable oil and industrial applications both of them are in a positive crossover as well with
such as biodiesel, Soybean is generally classified as ADX turning the strength back in the bulls’ den by
an oilseed rather than a pulse. In Indian scenario, having started to converge. At the same time, we can
we can easily conclude Soybean as the most popular see a very crucial trend line breakout after yesterday’s
oilseed that has replaced Groundnut and Mustard in gap-up candlestick that is forcing itself to get out of
last one and a half decade to achieve the feat. Soybean the equally crucial moving average band. Thus, we
is also one of the most favorite and active commodity have a very good set-up for buyers and interestingly,
on futures trading bourses in India. it has been discovered right at its emergence.
From trading around Rs 1100 per quintal in late 2005 We recommend buying in Soybean December
to topping the chart by hitting a price range above contract at CMP Rs 2927 and add more above
Rs 5000 per quintal in mid 2012, Soybean has seen it Rs 3000 for targets in the range of Rs 3290-3400.
all! In last 18 months, prices have broadly remained Maintain stop loss below Rs 2800.
under pressure and have seen a relentless decline till
May this year. Prices are once again on a falling spree
since last two months. However, technical charts
are favoring a strong bullish reversal from here as
we can see prices registering gains of around four
percent in first two days of November after hitting
the dip oversold zone that has actually triggered
some positivity in the overall outlook. First of all,
7 ARIHANT CAPITAL ¡ novembER 2017
