Soybeans Trend Up?
Eddie Tofpik | Mar 06, 2017 09:50
Soybean: So far, the bullish channel I'd drawn back from Nov 2016 last month has held as the general direction of the market. However, one can say that this month has been mixed as prices crossed over, moving away and then returning to cross again the combination of the recent 50% Fib at 1031 plus the Long MA (currently 1036) which has been its constant companion during Feb. Nevertheless, prices could be seen during Jan - Feb to have done two steps down and one step up with lower highs and lows.
This has led me to draw the Bearish Schiff Pitchfork over this period which along with the extension of the Bullish Channel is really the only thing I've added to the Daily Chart above. You might suggest I ought to have gone further in Bearishness but I would point out one feature which has tempered such thought for the time being at least. On the 27th of Feb when we formed the low in Feb testing down to the key 50% Fib at 1007 where we had not only a close below the rising Medium MA support (currently 1016) but also a Key Reversal Down. Yet this failed spectacularly the next day with a big move higher. Hence, though I might have been tempted to look for lower prices, I'm not convinced just yet beyond drawing one single small Bearish Schiff Pitchfork that this scenario fits.
The bullet point remains mildly Bullish for a little while longer...though I could see it go into neutral. Support is currently at 1026,1024, 1022,1020,1016 (dynamic), 1006. Resistance is at 1030,1032,1039,1043,1045,1049(dynamic), 1063,1069,1071 and 1080.
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