July soybean futures at the Chicago Board of Trade on Thursday hit a fresh seven-month high of $11.31 a bushel. Prices are also in a nine-week-old uptrend on the daily bar chart. The bulls have gained solid upside technical momentum recently, and are looking for more on the upside in the near term. The next upside price objective for the powerful soybean market bulls is to produce a close above solid chart resistance at $11.50 a bushel in July futures. Above that lies psychological resistance at $12.00 a bushel. With soybean prices climbing above $11.00 a bushel recently, it also signals to traders that daily price moves are likely to become larger–both on the upside and on the downside–as the price up-trend continues.
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A close above $12.00 a bushel in July soybeans would also likely attract more speculative money to the soybean futures complex. It was less than a year ago that July soybeans hit a fresh all-time record high of $16.50 a bushel, on July 3. Solid technical support for July soybeans is located at the January high of $10.76 a bushel. A close below technical support at $10.50 a bushel in July soybeans would begin to deflate the bulls.
Stay tuned! Jim Wyckoff firstname.lastname@example.org