Soybean Oil Futures
- The price is in a downtrend in the recent days, indicated by the series of lower highs and lower lows from the last peak around $45.
- Current price level: $41.90, which marks a significant drop of -3.30% on the last candle.
- There seems to be support around $41, which has been tested multiple times (mid-August and today). A break below this level could signal further downside.
- The price is approaching the lower Bollinger Band, indicating that it may be in an oversold condition. Historically, the price tends to revert back towards the mean (the middle band) after touching the lower band.
- The bands are not extremely wide, suggesting low volatility during the last period.
- Recent days have shown higher volume on down candles, which could indicate strong selling pressure.
- The largest red volume bar appears in the last session, showing intense selling interest.
- Short-term: The price has been trending downward after a rejection near $44. The downward momentum is increasing, and the next major support is around $41. If it holds, there may be a bounce, but breaking it could lead to further downside.
- Medium-term: The chart shows that after a rally from June to July 2024, the price failed to sustain the uptrend and reversed in mid-August. Currently, the trend favors the bears.
- For bulls: Look for a bounce at $41 or a break above the 20-day moving average with increasing volume to confirm a reversal.
- For bears: Watch for a confirmed break below the $41 support for further downside, possibly targeting the next support level near $38.
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