It’s time to turn to the exciting world of soybean oil as it falls to support. Below we have a weekly chart of the Dow Jones-UBS Soybean Oil index. We aren’t going to examine any flashy indicators or Fibonacci Retracements, just two simple trend lines.
Both lines originated in 2009, one before the crash and one from the bottom. As you can see soybean oil has fallen to its rising trend line which has acted as support during the previous declines in the commodity. If this support can hold then we could see soy oil bounce back to its fall trend line just under $80.
It doesn’t always take 10 different oscillators and moving averages to create an analysis of a security or commodity, oftentimes a near- ‘naked’ chart is all you need.
Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.
