Soybeans: Trend UP?
Eddie Tofpik | Mar 05, 2018 06:09
The key to this past month was the Key Reversal Up on the Tuesday after my last report...Tuesday the 6 of Feb. It was a Key Reversal Up and it started a move higher that was clearly marked by the Jan - Feb Andrews Pitchfork that started on that 6th of Feb.
The Middle Tine (currently 1072) has been key in establishing the Bullish angle-of-attack throughout Feb. We went up through the key 50% Fib of the 2016 - 2017 move at 1025 (now support), up to the Upper Tine of the Aug 2017 - Jan 2018 Andrews Pitchfork (currently 1069) which we're testing whether to be support or resistance at this time and then final almost (at time of writing) to the 2017 high resistance at 1088.
This new AP is key to the recent rise and the Upper (1100), Middle (1072) and Lower (1044) Tines are therefore key to where we go next. We've reached a cusp with the combined Tine resistances and the nearby 2017 high...you can see what I mean on the Daily Chart above. We're in danger of forming a Bearish Evening Star Pattern and a move back to the Lower Tine... and perhaps more. Watch this one closely over the next few days, a Bearish Evening Star on its own may not be enough to push prices lower as we've had the Legs of Candles stray up over the Middle Tine of the AP and form Bearish Patterns before in Feb only to then see the next session resume the move higher...just caution in this case. With this in mind, I'll leave the bullet point above as mildly Bullish...this may change both ways next time.
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