Commodities

Technical Analysis – Soybeans futures are on course for possible downward movement

Posted on February 27, 2019 at 2:14 pm GMT

Melina Deltas, XM Investment Research Desk

Soybeans futures pulled back on the medium-term ascending trend line and the 23.6% Fibonacci retracement level of the upleg from 8.1156 to 9.3045 near 9.0219, confirming the medium-term upside rally in the daily timeframe. Currently, the price is trading below the bearish cross within the 20- and 40-simple moving averages (SMAs), pointing to a possible fall below the trend line. The MACD and the RSI are flattening near their neutral levels, suggesting that the recent view is weakening.

A decline below the 23.6% Fibonacci of 9.0219 and the diagonal line could shift the positive picture to a more neutral one, challenging the 8.9020 support. Beneath this level, the 38.2% Fibonacci of 8.8481 could act as strong support before heading towards the 50.0% Fibonacci of 8.7079.

Alternatively, if the price jumps above the SMAs, the next level to turn traders’ attention could be the 9.1900 resistance barrier. More advances could push the price towards the seven-month high of 9.3045 resistance.

Summarizing, Soybeans maintains a bullish bias in the medium-term timeframe, recording higher highs and higher lows. This structure could be confirmed once again if the market surpasses the upper multi-month high, registered on February 1.

commodities Soybeans

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.