The continuous futures contract of castorseed on the National Commodity and Derivatives Exchange (NCDEX) entered a consolidation phase early on in the current year. The futures started to trade within the range of ₹4,300 and ₹4,470. The sideways trend remained till the end of February and in early March the contract started to pick up positive momentum and breached the hurdle at ₹4,470. It hit a high of ₹5,428 towards the end of April and by mid-May it had fallen to ₹5,000.
In July, the contract surpassed the prior high of ₹5,428 with good volume. While this is a bullish signal, the futures failed to extend the rally. Even though there was no decline in price, the contract has been fluctuating within ₹5,500 and ₹5,775. But on Monday, the contract broke out of ₹5,775 and made a fresh high of ₹5,830, opening the door for further strengthening.
So, traders can be bullish on castorseed futures. One can buy September futures with stop-loss at ₹5,700 for a target of ₹6,000.