Soybean Oil and Brent Crude Complete Major Chart Tops

Effective with this update, per my post last evening, I have adopted a signficantly modified policy on blog postings and Twitter/StockTwits/email communications. Please read the previous post regarding this subject here.

Consistent with this policy, I will periodically show major chart patterns as they become completed. I would expect that such posts will be made two or three times per month. Last night I alluded to the following analysis.

Two major chart patterns were completed this past week. I will cover these developments. As an added feature (not to be continued in the future), a listing of all major current moves supported by completed chart patterns as well as possible pending moves is included as a PDF at the end of this post.

Soybean Oil

The weekly and daily charts show that the decline this past week completed a major 10-month symmetrical or descending triangle. The target of this pattern is 46.00. A rally back to 55.00 by the December contract would not harm this interpretation. A close above 56.00 would be necessary to call this intepretation into question.

Brent Sea Crude

The decline on Friday completed a 5-month descending triangle in the Dec. Brent contract. This contract has carried a significant premium to the higher quality Sweet contract traded in NY due to a variety of reasons. While the target is 85.00, a test of the 2010 low at 75.00 is a real possibility.

The PDF below lists all of the major ongoing moves launched from signficant chart patterns, as well as possible pending moves. Are there guarantees that these patterns will all work? Not at all. Even the big patterns can fail.

Markets: $ZL_F, $IC_F

[Note: The above post was written on Saturday and was intended to be a companion piece to last night’s positing. With the wild action last night, some initial targets were met in Silver, Gold, Copper, Crude Oil and Platinum. My guess is that a near term bottom may be at hand in these markets, but expect volatility as the rule. Of course, if a worldwide liquidation of precious metals holdings were to occur, all bets are off.]



The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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