The bull need to breath - why soybeans is close to a correction.
Since the beginning of November, the soybean market has rallied 23.5% on the back of a very bullish story (Chinese demand and some weather fear). We all know that in a healthy and constructive bull market, we always have some profit-taking and dips along the way…Technically the market is showing some exhaustion in the short term, which may bring some profit-taking and downside pressure at the beginning of 2021 (and buying opportunity)….
Today’s price action makes me believe that if we break the lows of 1280 basis SH21, the profit-taking/selling pressure can accelerate in the short term, which may bring prices to the 38% and 50% of Fibonacci retracement levels (blue box). This blue box (1200/1150 interval) is also the level where a big chunk of the recent longs were taken, as we can see in the volume by price profile (horizontal bars on the right).
This 1200/1150 area the market will try to defend and is targeting as strong support going into the beginning of 2021!!
The bull is still alive and strong going into 2021 - BEANS BACK TO THE TEENS
Today’s price action makes me believe that if we break the lows of 1280 basis SH21, the profit-taking/selling pressure can accelerate in the short term, which may bring prices to the 38% and 50% of Fibonacci retracement levels (blue box). This blue box (1200/1150 interval) is also the level where a big chunk of the recent longs were taken, as we can see in the volume by price profile (horizontal bars on the right).
This 1200/1150 area the market will try to defend and is targeting as strong support going into the beginning of 2021!!
The bull is still alive and strong going into 2021 - BEANS BACK TO THE TEENS
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