Soybean Oil (Soyoil) is slowly playing catch up with the rally in Crude Palm Oil and there is likely more room on the upside in the short term.
Crude Palm Oil had earlier rallied in September/October and Soyoil is slowly picking up steam on the upside.
Yesterday’s move above the 200-day SMA is positive and supportive of the recent breakout above the key resistance of 29.48 as well as the uptrend channel resistance.
As the wave count suggest, this rebound is most likely to take prices back up to the previous 4th wave extreme i.e. 35.29.
We believe that Soyoil could continue to climb higher in the weeks to come, edging towards the 33.45-35.29 levels. Near term support is 29.48 while the most critical support is at 26.74.
As long as 26.74 hold, continue to look higher here. (Read Report)
Source : CIMB Research