March Soybean Oil in Steep Price Downtrend

march2010soybeanoil.gifMarch soybean oil futures at the Chicago Board of Trade are presently in a strong three-week-old price down-trend on the daily bar chart. Prices have sold off sharply, scoring a fresh 2.5-month low on Tuesday, after hitting a fresh seven-month high of 41.91 cents a pound in early January. The soybean oil bears have solid near-term technical momentum and their next downside price objective is to push and close March futures prices below solid technical support at 36.35 cents. Above that is located chart support at the November low of 36.95, at 36.75 and at 36.50 cents.
The bean oil bulls would begin to regain some upside technical momentum by producing a close above technical resistance at 38.00 cents, basis March futures. Below that level is located chart resistance at Wednesday’s overnight high of 37.55 cents. Soybean oil traders will continue to keep one eye on the crude oil futures market. Crude is an important “outside market” that has had a strong influence over the bean oil market. Crude oil’s recent sell off has helped to press soybean oil futures lower. Stay tuned! Jim Wyckoff

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