Soybeans: Nothing Bullish To Be Said
Eddie Tofpik | Sep 08, 2015 15:10
First off…let me outline my ground rules. There is nothing bullish I can say about soybeans market. If it was going to rally it not only would have done so by now but additionally the half-hearted attempt in late Aug doesn’t count… and you know why – very simple – it failed to even breach the key 50% Fib on the Daily Chart at 49.65.
It also failed to breach the Short/Medium MA (currently 48.59). OK – there is still time but if this bull move up had anything significant behind it then it really, really, ought to have done it by now! We have a huge overhang of selling supply between 56.00 – 62.00 and no rally so winsome as this recently is going to dent it! So – support is at 45.34, 43.21, 41.67 (dynamic), 40.40 (combined) and 37.72. Resistance is at 46.83, 47.44 (dynamic), 48.42 (combined), 49.65 & 52.46.
You would need to have two consecutive closes not only over the Long MA but rather also over the Medium MA (currently 53.33) to secure any market neutrality. Looking at the Weekly & Monthly Charts, I am not optimistic for any rallies. There is distinct possibility of the 2015 action being the centre of a huge Bearish Halfway Hesitation but I will not explore that option just yet… just bear it in mind. Bullet point is fully blue for fully bearish!
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