Soybeans See Price Action Pause, Which is Not Bearish

soybean_July11.gifJuly soybean futures at the Chicago Board of Trade are presently in a pause mode on the daily bar chart, following last week’s strong gains that pushed prices to a three-week high of $13.96 a bushel. The present pause is not bearish and does suggest the bulls are building up energy for another upside assault soon. The next upside technical objective for the soybean bulls is to produce a close in July futures above major psychological resistance at $14.00 a bushel. Just above the $14.00 level is located a stiff layer of technical resistance, starting with the May high of $14.02 1/2, at $14.17 3/4 and then at the April high of $14.27.
A drop in July soybean futures prices below near-term technical support at $14.65 would begin to dent bullish near-term technical enthusiasm.

There is chart support located at $13.50, with stronger support seen at $13.40. The soybean market and the rest of the grain futures markets will continue to keep one eye on the key “outside markets” that have had such a strong influence over the commodity markets in recent months–the U.S. dollar index and crude oil futures. If crude oil futures can sustain an uptrend and the U.S. dollar index resumes a downtrend, that would likely help propel July soybeans back toward the contract high of $14.74 1/2, scored in February. If crude oil embarks upon a fresh leg down in prices in the near term, and the U.S. dollar index continues to rebound from its recent 2.5-year low, then upside price potential in the soybean market would be limited, barring a major weather scare in the U.S. soybean-growing region. Stay tuned!–Jim Wyckoff

Enhanced by Zemanta

4 Responses to Soybeans See Price Action Pause, Which is Not Bearish

  1. halliesbrady July 12, 2011 at 7:54 pm #

    Finding information on soybeans can really help to come up with a useful marketing strategy. Do you know any good resources?

  2. susanvlord July 12, 2011 at 7:56 pm #

    You have some good information on the price trends for July. Finding the most recent information on soybeans can really help you come up with a useful marketing strategy. It is invaluable information. If you are in the field of agriculture, it is imperative to be knowledgeable about production and prices. Although I currently work for, I have worked in the agriculture field for years, and they honestly have a lot of really useful information and their agricultural listings are not only detailed, but also updated constantly. I would definitely recommend them.

  3. Youtube Guy March 21, 2013 at 9:58 pm #

    I’ve been surfing on-line more than 3 hours nowadays, yet I by no means found any fascinating article like yours. It is lovely value sufficient for me. Personally, if all website owners and bloggers made good content material as you did, the web might be much more helpful than ever before.

  4. binary options trading March 22, 2013 at 1:23 am #

    I’ve learn a few excellent stuff here. Certainly value bookmarking for revisiting. I wonder how much attempt you place to create the sort of great informative web site.