Soybeans Tech Update
Grain Market Commentary
Wednesday, November 28, 2018
by Jacob Christy, Freedom Program Trader
Another wild session in what’s been an eventful week for the bean market. As the trade meeting between the U.S. and Chinese presidents scheduled for this weekend looms the market has been wrapped up in every tweet, quote, and headline. With so much at stake the market remains on edge as major pre-meeting positioning has taken over.
Looking at the chart bean prices have a 38c range already this week. Prices have bounced off the bottom and the top of a long standing triangle formation going back to August. With neither bulls or bears willing to stick their necks out too far, the long term formation has been able to hold both breaks and rallies. Breaching either the bottom or top of this triangle seems likely and with formation objective of over a dollar the triangle bounds become key chart points moving forward.
To the upside getting above the 900 mark probably elicits a test of the July high at 930 with the contracts 200-day moving average at 943 above there. To the downside expect a break below 860 to open the door for a test of contract lows at 826.
Either way the short term direction of bean prices is going to be largely dependent on the outcome of this weekend’s trade talks. Keep an eye on the bounds of the triangle formation as red flags for the start of bigger moves.