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Wednesday, January 13, 2010

Andrew's Pitchfork Indicate Support For Soybean Oil

March Soybean Oil The Bean oil has formed a bullish reaction swing at the upward sloping median line and old high. A trade above the high will confirm the reaction swing and trigger a run to the upper parallel reaction line. Buy the Bean oil at or slightly above $38.00 Support, with a stop loss under the $37.00 pivot low.

March soybean oil was lower overnight as it extends the decline off last week's high. The low- range close sets the stage for a steady to lower opening when the day session begins later this morning. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term.

If March extends the current decline, December's low crossing at 38.06 is the next downside target. Closes above the 10-day moving average crossing at 40.29 would confirm that a short-term low has been posted.

First resistance is the 20-day moving average crossing at 39.80. Second resistance is the 10-day moving average crossing at 40.29.
First support is the overnight low crossing at 39.04. Second support is December's low crossing at 38.06.

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