ZLBT Chats

Saturday, March 31, 2012

Technical Analysis >>> Soybean Oil May (ZLK12)

May soybean oil closed up 151-pts. at 55.10.

May soybean oil closed higher due to short covering on Friday due to spillover strength from soybeans, corn and wheat. The high-range close sets the stage for a steady to higher opening when Monday's night session begins trading. 
Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Multiple closes below last Thursday's low crossing at 53.66 would open the door for a test of March's low crossing at 52.88. 
If May renews this year's rally, the 62% retracement level of the 2011-decline crossing at 56.42 is the next upside target. 
First resistance is Monday's high crossing at 55.82. 
Second resistance is the 62% retracement level of the 2011-decline crossing at 56.42. 
First support is Thursday's low crossing at 53.59. 
Second support is March's low crossing at 52.88.

 GOODLUCK


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