On April 5th, July Soybeans posted aÂ low close of $945 1/4 inside the 60% buy window. Two days later,Â Soybeans rallied out of the buy window and traded through the trigger price for a long entry signal. The reverse/forward count projected a new upward price swing ofÂ twelve days from the low closeÂ from April 5th.Â I also used theÂ count to project a targetÂ objective at the down-slopingÂ reaction (red)Â line. After the buy signal was triggered, July Soybeans rallied over 60 cents into the April 21st reversal date and touched the down sloping reaction line -Â at $10.17 â€“ on the followingÂ (trail) day. Soybeans reversed at the reaction line and are currently trading sharply lower. By understanding how to use the â€œaction-reactionâ€ price behavior IÂ could have Â identified the target objectives two weeks in advance. To learn more about this trading technique read â€œUnlocking Wealth, Secret to Market Timingâ€.
The International Energy Agency said that it expects world oil demand to average 86.6 million barrels per day (mbd) in 2010, slightly more than the previous record high of 86.5 mbd in 2007.
Crude zoomed through the ascending median line and closed above the prior swing high of 85.43 on April 6th. From this new high, Crude oil dropped back to the support provided by the up-sloping median line and the 20-day SMA. This price action has formed a bullish reaction swing above the median line, and setÂ up a potential upward price move towards the reaction line target objective, currently at 90.00.
The sell recommendation made in the March 24, issue of the Traders Market Views was triggered at 1.1019 in the overnight session. The market has contnued to trade lower under heavy pressure and has reached the descending median line target objective at 1.0879. Â This is the initial target objective and typically offers support after a wide range day. This is a good place to step out of the trade, bank the nice one-day gain and wait for a bounce to form a new reaction swing sell pattern.