Fundamentally Veg Oils are behaving like 2010/2011, I am expecting a correction here this week due to a few factors, Short Trading Week, Long Week, Month end, PalmOil Stalling last week, much like Nov 2010.
If one wanted to take profits this is a good time, I am firm believer we keep rallying through Dec Jan Feb maybe Mar.
we are at Resistance now in the 38's Next...
VegOil Complex is Fundamentally as Bullish as the 2010/2011 Period.
-Fiscal Stimulus/Money Flow into Commodities
-Stocks of all Veg Oil are at 3-5y lows
-Consumption and Export Demand very strong
-The only thing that could ruin this party IMO is if the ratio of Covid Deaths/Cases start to creep up, that would be very worrisome.
RSI Overbought - Last time the RSI sat above 70 on the weekly was first week October 2011 through early November, where the price tried multiple times for +$60 and some change. Failed to $47, looking for the same sort of retracement. Negative Divergence.
Volume - High new volume this past week. My thoughts are sellers taking their profit...
Soybean Oil Futures (CME CBOT: ZL) :
Trade : BUY the Dip
Entry : 31.2
Target : 41.58 (+33.27%)
Stop : 28.53 (-8.56%)
Note: Soybeans futures are showing menaingful movement. I think it's time to pay attention to soybean oil futures. Key price is 34.16. When they secure that price line, it will be a sign that they are out of the bottom and will rise one notch...