Buy RM Seed, support at Rs 4070: Emkay

Soybean Technical Outlook:

Soybean Oct’12, futures prices corrected significantly to close at Rs 3737 levels. Second target of Rs 3710 levels achieved for the suggested short at Rs 3851 levels. Volumes and open interest are implying further correction in the price. Prices could escalate to Rs 3761 levels breach of this it could extend to Rs 3814 levels. Support is at Rs 3682 levels and next support is at Rs 3627 levels. MACD is showing the sign of weakness in the price. RSI-14 is trading in oversold territory to signal continuation of downward trend. Price could enter bearish face.  

Rape/ Mustard Seed Technical Outlook:

RM Seed Oct’12, futures prices surged by 52 rupees to close at Rs 4226 levels. Volumes and open interest are supporting upside movement. Market sustained after taking key support of Rs 4074 levels. Prices could escalate to Rs 4270 levels breach of this it could extend to Rs 4314 levels. Support is witnessed at Rs 4148 levels violation of this could correct to next support of Rs 4070 levels. MACD is giving positive signal. RSI is showing the sign of appreciation in the price.  Prices to trade higher, so traders are advised to buy.

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