Soybeans: Trend Up?
Eddie Tofpik | Feb 06, 2017 09:17
Soybeans: Last time I drew a bullish Andrews pitchfork (since removed I’m afraid L) and said,
This AP might give the Angle of Attack for the coming market if it decides to maintain a bullish stance. Lower Tine support is currently at 1016 7/8 so we have effective support from there until 983 5/8 and we know where the resistance is already.
Well, prices did indeed decide to test the support and ignore the bullish AP I’d drawn, we went all the way down to the support mentioned at 983 5/8(dynamic)and formed a horn bottom before accelerating higher up to a newly formed mildly bullish channel line resistance at 1086 ¾(dynamic – support is at 993 ¾[dynamic]).
Since then, we’ve come off and entered a phase of indecision before seemingly this week, despite two consecutive closes below the 50% Fib at 1031 ¾ and long MA (currently 1030 3/8[dynamic])…entering a possible new bullish phase with a key reversal up last Wednesday on the daily chart above, or that is what it looked like, because on Friday we had a KR down on the daily chart.
So it may be that we are back into indecision…though with most if not all MAs heading up, a mildly bullish tinged one. Where we close consecutively, I’m now saying three times above or below the 50% Fib/Long MA is now vital for the direction of the market. Beware of false breaks. Given the mildly bullish channel and despite the seeming indecision, I am minded to move the bullet point above into mildly bullish.
Support in addition to previously mentioned levels is currently at 1026, 1024, 1020, 10171006, 1002(dynamic) and 989.
Resistance in addition to previously mentioned levels is currently at 1039, 1043, 1069 – 1072 and 1080.
Disclaimer:ADM Investor Services International Limited is authorised and regulated by The Financial Conduct Authority. Member of The London Stock Exchange. Registered office: 4th Floor Millennium Bridge House, 2 Lambeth Hill, London EC4V 3TT. Registered in England No. 2547805 a subsidiary of Archer Daniels Midland Company. Risk Warning: Investments in Equities, CFDs, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value, investors should therefore be aware that they may not realise the initial amount invested, and indeed may incur additional liabilities.
Get The App
These Investments may entail above average financial risk of loss, and investors should therefore carefully consider whether their financial circumstances and investment experience permit them to invest and, if necessary, seek the advice of an independent Financial Advisor. Some services described are not available to certain customers due to regulatory constraints either in the United Kingdom or elsewhere. © 2014 ADM Investor Services International Limited 2014.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.