The Commodity Specialist view – In our last Soybean Update we noted key resistance on the longer term chart which has since been tested. As expected, a pullback has been prompted and initial support has been found – bears need further evidence before gaining in confidence.
- SOYBEANS – WEEKLY CONTINUATION CHART:
See how the recent upmove has tested dual resistance from a bull channel top projection and 76.4% retracement level at 1453.75. Reaction here has, not surprisingly, been negative.
The 1291.25 2009 high has provided s/term support, but will it hold? - SOYBEANS – DAILY CHART MAY-11:
The pullback from resistance around the 1.618 swing projection off the prior Nov setback, at 1463, has breached s/term support from the 1356.00 09-Nov high, but so far been held by the projected channel base.
With important resistance seen on the Weekly continuation chart above there is a good chance that s/term strength will be temporary, ahead of further bear pressure.
A subsequent break of the channel base would signal loss of momentum, inviting a challenge to the 1254.00 38.2% pullback level before focus can shift to lower targets.
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