Tuesday, January 18, 2011

Rbob Retraces .618

Rbob Active Mo. Weekly
click to enlarge
Note the 14 RSI negative divergence and .618 retrace of the entire move down. On the actual spot month chart that .618 retrace is at 2.543. Current highs of 2.50 produce a .605 retrace of the spot mo.
Rbob is definitely in the ballpark now for the completion of the correction up from the .7850 low of 2008.

Rbob active mo Daily
click to enlarge
Again note the 14 RSI divergence. There is some measured -c- =  -a- resistance at 2.53, not far from the spot mo/. 2.54 .618 retrace. If the Rbob tries for another high the wedge resist line also will cut around that point.
So we've got serious Fibonacci resistance, tired RSI, very high spec open interest (see previous post) and an ending wedge formation.

Any approach toward 2.543/2.54 should be taken advantage of.
To the downside the 2.23 level represents a cluster of fib support and taking that out would confirm that THIS latest structure up from the Aug. lows is done. Kaput.



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