Temporary Resistance in Soybeans Ahead
23 April 2009
A second upleg in Soybeans has been underway since early March, which follows the significant low seen in Dec-08. We remain bullish of this market but caution against chasing it at the moment, with interesting resistance not far overhead.
WEEKLY CHART – CONTINUATION: Good support was found late last year from near the 76.4% retracement level. The second leg of a recovery is clearly seen, closing in on the notable 1106.50 Apr-08 low. But also see below…
DAILY CHART – JUL-09: Price has returned towards the Jan 1076.00 high – while this can offer s/term resistance we believe the more important, and perhaps stronger resistance lies higher – at the 38.2% 1122 rebound level of the prior Jul/Dec-08 major fall, and slightly higher bull channel top projection around 1130 just now. Note how these lie near to the 1106 level on the Weekly chart. A later break through this would provide a boost to the bulls. First support comes from the 978.50 23-Mar high now, and ultimately the rising support line around 870 must not be breached.
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