Soybean futures at the Chicago Board of Trade this week have seen a short-covering bounce from last Friday’s contract low of $7.76 1/4 a bushel. However, prices remain trapped below a five-month-old downtrend on the daily bar chart, from the early-July contract high of $16.48 a bushel. Bears to retain the overall near-term technical advantage in the soybean futures market.
click on the chart to enlargeFor the soybean bulls to get some significant upside near-term technical momentum uncorked, they would have to produce a close above solid technical and psychological resistance at $9.00 a bushel, basis January futures. Below that price level does lie technical resistance at the $8.75 level. On the downside, technical support for January soybeans is located at Thursday’s low of $8.26 3/4 and then psychological support is located at $8.00. Solid technical support is located at the contract low of $7.76 1/4. A close below the present contract low would then open the door to a quick price move to longer-term technical support at the $7.50 level, basis January futures.–Stay tuned! Jim Wyckoff