Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.



Technical Analysis on CBOT Soy oil
The Soy oil May future prices on CBOT platform were seen trading in a consolidation manner after making a low 28.16 cents from high of 68.59 cents by decreasing as much as -58.94%. There is a likely chance of “Double Bottom” pattern in the weekly chart, this pattern would be confirmed only on breach of 38 cents and if prices sustain above this level it is expected to move further high to test 48 cents which would be a target prices of “Double Bottom” formation.
In figure 1 a Rectangle dotted area indicates a possibility of Double Bottom formation, which may be a target price of 38 cents shown by dotted arrow vertical line. If market breaches and sustain above (or) one day close above 38 cents confirms the pattern, and one can take this as green signal for long position for the target of 48 cents.     
The trend line is acting as support nearer to 28 cents levels. The weekly RSI is treading at 0.43 levels signalling slightly chances of testing overbought zone in the near term. A close above the 10 WEMA confirms the uptrend movement in the prices and market is heading towards 20 DEMA.
Figure 1
According to Andrew pitchfork trend line theory, market has witnessed a crucial support at 28 cents and currently moving towards median line near to 38 cents; on breach of the same may possible to test the target price of 48 cents in the near term.
Figure 2
Overall, we expect CBOT soy oil prices to trade higher in the near term for the target of 38 cents; one day close above 38 cents confirms an uptrend rally towards 48 cents.
Indian terms:
Support 1:410, Support 2:398
Resistance 1: 472, Resistance 2: 510
Recommendation: Buy in the range of 430-440 targeting 510 then 550 with stoploss below 396.
The report contains the opinions of the author that are not to be construed as investment advice. The author, directors and other employees of Karvy, and its affiliates, cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above-mentioned opinions are based on the information which is believed to be accurate and no assurance can be given for the accuracy of this information. There is risk of loss in trading in derivatives. The author, directors and other employees of Karvy and its affiliates cannot be held responsible for any losses in trading.
Commodity derivatives trading involve substantial risk. The valuation of the underlying may fluctuate, and as a result, clients may lose their entire original investment. In no event should the content of this research report be construed as an express or an implied promise, guarantee or implication by, or from, Karvy Comtrade that you will profit or that losses can, or will be, limited in any manner whatsoever. Past results are no indication of future performance. The information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
We do not offer any sort of portfolio advisory, portfolio management, or investment advisory services. The reports are only for information purposes and not to be construed as investment advice.
For a detailed disclaimer please go to following URLs: