Commodities

Technical Analysis – Soybean futures pause bearish action; could bounce up in short-term

Posted on April 24, 2018 at 1:42 pm GMT

Christina Parthenidou, XM Investment Research Desk

Soybean futures for May delivery have already erased half of their gains made from April 3 to April 14 and are now consolidating losses near three-week lows in the four-hour chart. In the short-term, the downward pattern could remain in place as long as the SMAs trend to the downside and prices hold below them. Still, upside movements cannot be ruled out yet since both the RSI and the Stochastics are currently located in the oversold area, with the former fluctuating marginally below 30 and the latter forming a bullish cross below 20.

Should prices bounce up, the 50% Fibonacci of 10.24 of the upleg from 9.82 to 10.66 could provide nearby resistance ahead of the 20-period SMA which currently stands at 10.28. Moving further up, the 38.2% Fibonacci of 10.34 could be approached next, while a substantial close above this previous resistance level could increase positive momentum towards the 50-period SMA at 10.41.

Alternatively, if the market extends losses, prices could find a barrier around the 61.8% Fibonacci of 10.14, where the market found some support in March. Even lower, the 10.00 psychological level which coincides with the 78.6% Fibonacci could attract traders’ attention as well.

commodity SBEAN futures

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