Soybeans Tech Update
Grain Market Commentary
Wednesday, August 8, 2018
by Jacob Christy, Freedom Program Trader
Two consecutive closes above the 900 mark has momentum back up in the bean market. Nov futures are finding support from Monday’s lower than expected crop ratings and chatter that China may need to revert back to U.S. bean imports in the coming months. Friday’s USDA report looms large especially with bean crops entering key development stages and the market at a teetering point technically.
Looking at the bean chart shows the market is attempting to hold its short term upward trend. After scoring a reversal candle last Friday, prices have seen three consecutive days of higher lows, keeping the upward trend intact. The market did briefly traded above the 50-day moving average today but failed to hold above the indicator by the close. Nov18 futures have not closed above the 50-day since June 1st , when beans were 1037.
Momentum is higher, but indicators are now moving into overbought territory which could make extending recent gains harder. A close above the 50-day would go a long way in reaffirming the upward correction. Slipping back below 900 would be a technical blow. Expect the reaction from Friday’s data to set the short term tone.