Good morning Traders!
Soybeans products have seen a strong selloff in the last couple of weeks, today I want to take a look at the chart of Soybean Oil.
Soybean Oil
The market is now in a confirm downtrend on the Daily, Weekly and the Monthly timeframes. After a strong push to a new Lower Low, the market is currently overextended on all the higher timeframes, and yesterday’s Daily candle showed the potential for a beginning of the pullback.
I am looking for a pullback to around the area of the 50 to 51 mark, to release some of this strong selling pressure. Drawing the Fibonacci retracement of the latest Daily move, has this area sitting around the 50% retracement. There are also a couple of previous significant touches in this area.
If and when the market will pullback into this area, I’ll be looking for a potential rollover setup.
Happy Trading!
