The chart below is key to this analysis.
Soybean Oil
(ZLK24)
May
From last week,
Use 48.75 as the swing point for the week.
The market got above 48.75 on a closing basis twice, but the next day was right back below it, keeping this a key level to watch.
Use 48.75 as the swing point for the week again.
Above it, look for the area of the 51.32 major Gann square and the long term swing point at 51.80, this is 38.2% back to the 7/24/23 high. Above there the trend turns positive and you can look for 61.8% of the same move at 56.55.
Below it, the short term target is 78.6% back to the 2/23/24 low at 45.45, holding this level can be the start of the next big rally (78.6% rule). The long term target is 78.6% at 38.62, this is also a major Gann square. Any setback that holds the previous major Gann square at 47.39 is a very strong sign and new highs for this leg up can quickly follow.
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