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Soybeanoil

How do we ride through the selloff storm?Joining a global commodities rout, Soybean Oil had a rough time in the past 2 weeks, tumbling close to 22%. The move precipitated after breaking the 6-month uptrend and has struggled to find support until now. After bouncing off the $65 support level and the 61.8% Fibonacci retracement, prices seem to have found a floor, ready to make the next leg upwards. Zooming out to the daily candles, we see Relative Strength Index (RSI) deeply oversold, with only 2 other occasions since 2015 where the RSI reached such levels. One was in 2015 and the other one in 2020.The 2015 instance was followed a 50% price increase from the low of the RSI and the 2020 one was followed by a massive 196% price increase. The sharp selloff, strong support levels, and historical precedence allow us to favor the long side for Soybean Oil. Entry at 66.87, stops at 58.3. Target at 78.9. Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
CBOT:ZL1!Long
by inspirante
Dining out soon?China, one of the largest consumer of soybean oil, has tapered its demand for the edible oil due to COVID-related control measures over the past few months. With new cases falling and lockdown for Shanghai expected to be lifted soon, we see positive demand drivers on the horizon for soybean oil. Restaurants are among the largest consumers of the oil. As consumers resume their normal consumption patterns and dining out becomes the norm again, it’s easy to see the impact on demand. Looking at the charts, we see a falling wedge pattern since April (where prices make lower highs and lower lows) which generally indicates an upside breakout could be near. On a longer timeframe, we are close to the 6-month uptrend line, where prices have bounced off in the past. Additionally the $78 resistance level provides us with further confidence that prices are likely to remain supported at the current levels before making a jump higher. As demand from the world’s largest consumer of soybean oil revives and technical levels remain intact, we expect more upside from here! Staggered entry at 79.25 and 78.25 with stops below 77.25 and targets at 84 and 87.60. Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
CBOT:ZL1!Long
by inspirante
1
Descending Triangle on Soybean Oil, Target at 3755Trend Analysis The main view of this trade idea is on the 4-Hour Chart. The commodity soybean oil (SOYUSD) is in a descending triangle setup pattern. The resistance line is seen with lower highs on 7200 and 6495 respectively. The support line is observed around 5450. A breakdown in support will take SOYUSD towards 3755. A negation of this pattern will be seen if the commodity breaks above the resistance trend line, above 6490. Soybean Oil is in a sell mode as it approaches support around 5450 on the longer termed Daily chart. Technical Indicators The technical indicators are bearish for SOYUSD. There has been negative crossovers on the short (50-MA), medium (100-MA) and long (200-MA) fractal moving averages. The RSI is trading below 50 and there has been a negative crossover on the KST as the commodity’s price approaches support. Recommendation The recommendation will be to go short at market, with a stop loss at 6490 and a target of 3755. This produces a risk/reward ratio of 1.68. Disclaimer The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to Soybean Oil.
FOREXCOM:SOYUSDShort
by Ceddy86
1
Soybean Oil Positioned to Move Higher to 6700 Trend Analysis The main view of this trade idea is on the 2-Hour Chart. Soybean Oil (SOYUSD) hit some resistance around the 6315 price level and declined towards 5845 where the commodity found support. SOYUSD is rallying to re test 6315 resistance. Expectations are for the commodity to breakout higher and target 6700. Failure of this move would occur if SOYUSD decline towards 5800. On a Daily Chart there has been a trend change from early September for the commodity to make a leg higher. Technical Indicators SOYUSD is trending higher with positive crossovers on the short (50-MA), medium (100-MA) and long (200-MA) fractal moving averages. The commodity is trading above the respective MAs. The RSI is above 50, indicating a bullish price move. This is corroborated by the KST in a positive mode. Recommendation The recommendation will be to go long at market, with a stop loss at 5800 and a target of 6700. This produces a risk/reward ratio of 1.66. Disclaimer The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes.
FOREXCOM:SOYUSDLong
by Ceddy86