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From : Commodities Daily Hotline: 24 October 2014
Chart of the day: Soybean Oil revives base theory

 

The Soybean Oil instrument has generated a bullish P&F Breakout on the automated scanner.  This follows the move through 32.40 on Thursday.  The price of the contract has lifted off the floor of the short-term trading range.  This action revives the basing theory, which would be strengthened on a move through the 50-day moving average.  Still, we would prefer to wait for a break over the band highs, at 33.83 before considering longs.

The Soybean Meal and Soybeans contracts appear on the 'Gainers' list with +4.3% and +3.2%, respectively.  The former retests recent intraday resistance at 353.60; at the 200-day moving average.  A clearance will surely lead to a challenge upon the July/early-September band highs at 366.60.  We would point out, though, that the RSI is at a high level, indicating the onset of an overbought state.

The latter also produced a 'Bull' P&F Breakout signal yesterday, at 967.5.  The Candlestick chart reproduced here shows the price extending up form the oversold floor near 900, edging over downtrend resistance at the shorter-term MA to test the psychological 1000 level.






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