Soya bean breaks range on the downside: Sharekhan

Sharekhan report on Soya bean:

The adjoining chart is a weekly chart of NCDEX soya bean. Last week we saw the soya bean broke the consolidation on the downside. It has started forming lower bottoms on the weekly charts which clearly indicates that the trend is down as per the Dow Theory. The weekly momentum indicator has triggered a negative crossover.

We expect soya bean to trade weak going ahead for the targets of Rs 3595, which is the 40-weekly exponential moving average and Rs 3508, which is the 20-weekly simple moving average. The stoploss should be placed at Rs 3950, which is the swing’s high.

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