Soybean Oil H&S chart pattern
I have seen that the Soybean has been forming very clear chart patterns over the months.
Yesterday it has just reached the support level of the left shoulder (formed at the end of sept.).
During the end of october it has established a higher high, which is the first sight of a potential secondary trend direction change.
If this is the higher low, it may be a great opportunity for a long position. ( I have indicated a potential buy position with a close stop loss).
If the downtrend continues, the next thing to look out for is a possible SECOND HEAD (making it a more complex head & shoulders formation), or a DOUBLE BOTTOM, something that we saw in december 2011.
Of course there is also the possibility of forming both, which will be quite a clear signal.
The target line has been estimated assuming a breakout from the line in the breakout zone and it is the furthest target line that I can point out in the current situation. Therefore it can be subject to change and for a short term target it can be moved closer.
Thanks.
Yesterday it has just reached the support level of the left shoulder (formed at the end of sept.).
During the end of october it has established a higher high, which is the first sight of a potential secondary trend direction change.
If this is the higher low, it may be a great opportunity for a long position. ( I have indicated a potential buy position with a close stop loss).
If the downtrend continues, the next thing to look out for is a possible SECOND HEAD (making it a more complex head & shoulders formation), or a DOUBLE BOTTOM, something that we saw in december 2011.
Of course there is also the possibility of forming both, which will be quite a clear signal.
The target line has been estimated assuming a breakout from the line in the breakout zone and it is the furthest target line that I can point out in the current situation. Therefore it can be subject to change and for a short term target it can be moved closer.
Thanks.
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