Soybeans (SOYBNUSD)
Updated
- In the latest prospective planting document, it was reported that acreage allocated for soybeans will increase by 7% this upcoming season. This means that soybean is fundamentally bullish. Analysis from previous reports show that there is an 80% correlation between an increase in acreage and an increase in prices 10-days post the release of the report. Additionally, there is a perfect correlation between an increase in acreage and an increase in prices 20-days post. Regardless of acreage changes, soybeans prices have gone up 7 times out of the last 10 years 20-days post of the release of the prospective planting report.
- It is anticipated that soybeans will drop to the next major support line before heading back up
- Entry price will be approximately 9.16
- There is also a Gartley pattern, with the D point @ 9.20, which is confluent with the support line
- First profit target will be at 10.260, however prices will likely go higher
- Note: The D point of the gartley can drawn by using a 78.6% retracement of the XA leg
- It is anticipated that soybeans will drop to the next major support line before heading back up
- Entry price will be approximately 9.16
- There is also a Gartley pattern, with the D point @ 9.20, which is confluent with the support line
- First profit target will be at 10.260, however prices will likely go higher
- Note: The D point of the gartley can drawn by using a 78.6% retracement of the XA leg
Note
Note
During this time of the year, when farmers began planting for the new season, Soybeans has been historically bullish. On Thursday, 13th April a resistance line was broken, coupled with a SARS switch suggest the beginning of the highly-anticipated bull run. A long position was placed on soybeans on Monday morning at 9.56. It is likely that prices may retest the previous resistance line at 9.44 before moving further up. Stop loss was set at 9.27.
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