Feb 17, 2020 - Posted by Darren Chu, CFA of Tradable Patterns
Soybean (ZS) saw some profittaking Friday, forming the 1st red daily candle in 5 days. Significantly, although ZS has halted the January slide, ZS is hesitating just below the psychologically key 900 whole figure level, with any decisive rejection at 900 likely to be followed by a retest of the January low. Odds are fairly high that any retest of the January low are an extension of the January bottoming effort, with odds of a retest of the 2019 low in the weeks thereafter fairly low. Except for the weekly MACD which still slopes down, the weekly and daily RSI, Stochastics and MACD are bottomish or consolidating recent gains. I am looking to go long in the green zone (of the daily chart), and am targeting the red zone for Friday. 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). Click here to read today’s technical analysis of Corn, Natural Gas.
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.