Near-term Bottom for Soybeans?
The soybean market has been under significant selling pressure since the August highs, breaking through some strong support pockets. Looking back to January of 2022, the market started to breakout to the upside, and we are now trading right near that breakout level after holding support very well, and the market is trying to push higher to finish out this week.
There is significant support below this market as mentioned, and it has held well and bounced nicely to the upside, coming in at 12.57-12.52. When looking at key support or resistance levels, it is important to note that each time a significant level is tested, that level becomes weaker and more likely to break. If this support can hold and the market can rebound, we could see a test back at 12.89, and bulls will want to chew through that level to invite more buyers.
Seasonally speaking, prices are still elevated compared to past averages. With that said, Soybeans typically can see a bottom around this time of year and look to run to the upside for an end of the year rally. For this market to make a significant move higher, bulls need to see this support pocket identified above to hold and need to see prices chew through some strong resistance with conviction as we push through harvest season.
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
There is significant support below this market as mentioned, and it has held well and bounced nicely to the upside, coming in at 12.57-12.52. When looking at key support or resistance levels, it is important to note that each time a significant level is tested, that level becomes weaker and more likely to break. If this support can hold and the market can rebound, we could see a test back at 12.89, and bulls will want to chew through that level to invite more buyers.
Seasonally speaking, prices are still elevated compared to past averages. With that said, Soybeans typically can see a bottom around this time of year and look to run to the upside for an end of the year rally. For this market to make a significant move higher, bulls need to see this support pocket identified above to hold and need to see prices chew through some strong resistance with conviction as we push through harvest season.
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Disclaimer
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