Soybean Bears Gain Fresh Downside Technical Momentum

may_soybeans_march1110.gifMay soybean futures at the Chicago Board of Trade on Thursday gave back all of Wednesday’s short-covering gains, and then some. Prices hit a fresh four-week low of $9.33 3/4 as of this writing. Price action this week has put a three-week-old downtrend line in place on the daily bar chart for May soybeans.
Bears have regained downside near-term technical momentum this week. Their next downside price objective is to produce a close below strong technical support at the February low of $9.11, basis May futures. Above that key price level is located chart support at $9.28 3/4 and then at $9.20 a bushel. For the soybean bulls to regain some upside near-term technical momentum they will have to push and close May futures prices above solid technical resistance at this week’s high of $9.64 1/4. Below that key price level is located chart resistance at $9.41, at $9.50 and then at $9.60 a bushel. Stay tuned! Jim Wyckoff

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