Commodities

Technical Analysis – Soybeans futures remain in bullish mode; eyes 7-month high next

Posted on February 22, 2019 at 10:04 am GMT

Melina Deltas, XM Investment Research Desk

Soybeans futures rebounded 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 in the preceding days, confirming the recent upside rally in the daily timeframe. Currently, the price is trading between the 20- and 40-simple moving averages, while a jump above these lines would endorse the bullish outlook. However, the MACD and the RSI are flattening near their neutral levels, suggesting that the recent view is weakening.

In case the price extends gains above the 20-SMA, the next level to turn traders’ attention could be the seven-month high of 9.3045 resistance, which stands near the upper Bollinger band. A break above the aforementioned levels, could last until the 9.4380 barrier, identified by the bottom on January 2018.

Alternatively, a decline below the 23.6% Fibonacci of 9.0219 and the uptrend 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.

Summarizing, Soybeans maintains a bullish bias in the longer timeframe, recording higher highs and higher lows. This structure could be confirmed once again if the market surpasses the upper Bollinger Band.

commodities Soybeans

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