SOYBEANOIL breaks below Thursday's low
Soybean Oil (SOYBEANOIL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SOYBEANOIL finished the week 0.53% higher at 26.67 after losing $0.43 (-1.59%) today on high volume. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 27.05, Soy Oil confirmed its breakout through the prior session low after trading up to $0.47 below it intraday.
Daily Candlestick Chart (SOYBEANOIL as at May 22, 2020):
Friday's trading range has been $0.56 (2.06%), that's slightly below the last trading month's daily average range of $0.56. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SOYBEANOIL.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on May 13th, SOYBEANOIL actually gained 1.12% on the following trading day.
Prices broke below the key technical support level at 26.70 (now R1), which is likely to act as resistance going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for Soybean Oil. Out of 324 times, SOYBEANOIL closed lower 54.63% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.40% with an average market move of -0.19%.
With three out of the other five Agriculture Commodity Markets closing lower today, the ones that stand out on the negative side are WHEAT losing -1.36% and SOYBEANS closing -0.24% lower. On the flipside the best performers have been OATS closing 0.94% higher and SOYMEAL gaining 0.53%. Read more