|
PureBytes Links
Trading Reference Links
|
We have a VERY interesting situation in Bean Oil.
In the .gif you can clearly see a rising wedge.
This wedge is normally very bearish. A breakdown usually is followed by a
decline to the bottom of the wedge.
BUT sometimes we see break outs on the upside. This is usually followed by
a DRAMATIC rise after the break.
You could call it a kind of failure of the promised outlook. And failures
are often followed by dramatick developments in the other direction.
What's interesting in this picture is that we have TWO failures.
1. The one above
2. The breakdown out of the wedge marked "Failure"
Now - not only have we a break out upside we also have a test of the
breakout followed by two bullish candle stick patterns (Hammer and
Engulfing).
Fundamentally there is a claim that we are short of Palm Oil and Bean oil.
I am no expert on these claims and take them at face value. But the
technical outlook looks good in my opinion.
with a stopploss below the trendline this could also be a rewarding trade.
regards
stig
Attachment Converted: "c:\eudora\attach\OIL1.gif"
|