As described in the earlier posts, the soy oil market seems unable to sustain on higher levels. After witnessing a price rise for the three consecutive days, today market fell due to lacklustre demand in the physical market.
The earlier rise was mainly due to short covering and support from crude oil. Today crude oil has also seen some profit booking in international market.
In Indian futures market, the NCDEX feb soy oil contract is getting strong resistance near 632 level. Today if market closes below 626 level then market may further witness weakness towards 610 level. [current price level at 9.19 IST is 624.45]
At the same time closing above 632 will make market strong.
Current market condition seems weak.
Soy oil Weekly chart : NCDEX Feb contract
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