Soybean Prices To Trend Down
Eddie Tofpik | Jun 09, 2015 10:42
Still a bit of a boring market for Soybeans but it seems we might be getting somewhere. We have broken out on the downside of the recent Sideways Triangle/Coil/Wedge/whatever pattern we have been stuck with since last year. We’ve had more than two consecutive closes below the lower Trendline (currently 948) and this is now resistance.
I am still wary of it being a false break so just keep observing. Ideally, I’d like a move up to the Lower Trendline and then a falling away downwards, again ideally to somewhere like 870.
However, I am mindful that we have some pretty solid support at 904 – 900 so that will be the second real test after the minor support at 926 is taken care of. Consecutive closes over the Lower Trendline would probably mean a false break and then the test would be the Medium MA (currently 977) plus the combination of the recent 50% Fib at 995, Upper Downtrend (currently 994) and the Long MA (currently 998).
Given this recent action and that all MAs are pointing downwards plus on the Monthly Chart we have a Key Reversal Down, I feel obliged to turn the bullet point above into full bearish.
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