Soybeans Tech Update

A quieter session for soybeans with a narrow 9c trading range and muted volume. Prices did test chart support, but with trade unsure on some key fundamental issues, the market lacked the downward momentum needed to push through.   

Looking at the chart, the main feature remains the post-harvest ascending trend channel. Prices tested the lower end of this channel today, which now coincides with the 100-day moving average. This 890 area is critical to holding trend, and will be the focus to finish this week. To the upside, the 200-day moving average has held each of the past two rally attempts and hasn’t been closed above since early June.  

For now, the market seems content to bounce around its major moving averages until more information becomes available. With the government shut-down, that new information will have to wait. Keep an eye on the 890-support area, but again with little to push the market either way, range bound trade seems most likely.