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.