Jan 6, 2020 - Posted by Darren Chu, CFA of Tradable Patterns
Soybean (ZS) sold off 1.5% (on the continuous contract) Friday to end the shortened holiday week. Significantly, ZS formed a weekly Gravestone last week, raising odds for a continued reversal lower going into Friday’s highly anticipated WASDE. ZS is testing upchannel support (on the 4hr chart), a break of which will likely quickly see ZS test the 38.2% Fib retrace of the DecemberJanuary rally. The weekly RSI, Stochastics and MACD are rallying or consolidating recent gains, suggesting a resumption in December’s push higher following the weakness these next several days as hinted by the downsloping daily equivalents. I am looking to go long in the green zone (of the daily chart), and am targeting the red zone for next Monday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter). Hope you enjoyed your holiday season. For the next 2 weeks, enjoy the monthly premium membership at 50% off! Login and click herefor more details. All the best in 2020!
Credit to: Copyright © 2020 Tradable Patterns Limited, All rights reserved.
About the author:
Before the launch of Tradable Patterns, Darren Chu, CFA, served as IntercontinentalExchange | NYSE Liffe’s country manager for Australia, India, and the UAE between July 2010 and January 2014, expanding his role to look after Liffe business development in APAC ex-Japan/Korea until his departure mid April 2014. His primary remit was developing relationships with Liffe clients, prospects and partners in the buyside (traditional and alternative asset managers), proprietary trading (high frequency algo as well as manual, point and click traders), bank, broker (institutional and retail), commodity trader and ISV community. Key futures and options promoted included European/London rate benchmarks such as the Euribor, Short Sterling, Gilts, London/European index futures including the FTSE and CAC, London soft commodities (Robusta Coffee, Cocoa, White Sugar), Paris (MATIF) markets (Milling Wheat, Rapeseed), and NYSE Liffe US markets with the MSCI EM, MSCI EAFE, gold/silver, Eurodollar, US Treasury and GCF Repo futures being the focus.
Previously, Darren was with the TMX Group | Montreal Exchange for 4 years, marketing Canadian futures and options across North America, London, Singapore and Hong Kong. Darren also launched and managed CMC Markets Canada’s Chinese marketing and sales team, along with educational offering. On the academic trail, Darren has been a frequent guest speaker at Canadian universities as well as an author of content for 3 derivatives courses offered by Canadian Securities Institute and mandatory for licensing of Canadian derivatives industry professionals.
Darren can be reached at: +65 8118 8840 or via email at darrenchu@tradablepatterns.com.