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The May Soybean Oil contract has fired 90-10 Low Continuation & Reversal and Momentum Pinball Buy signals for today's trading. The 90-10 Low Continuation & Reversal signal tells us to look for morning follow through on the weak close, but to expect a likely reversal once the initial move has bottomed. The Momentum Pinball Buy signal suggests that we'd want to consider longs if price is strong enough to break the first hour high. Cycle Indicators (chart at right) appear as if a short term cyclical top has recently been marked. Odds favor continued downside in today's early trading. Sell the break of yesterday's 54.33 low, or even earlier if price demonstrates weakness below the 54.69 level of the Daily Pivot. But stand prepared to exit or even reverse if we get appropriate price reversal patterns and/or Oscillator Divergence near important support levels. Our Normal Low Range Projection level of 53.80 or the Extended Low Range Projection level of 53.39 would be likely areas for such a reversal to take place, as would a test and failure of yesterday's low.

 

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