In observance of Good Friday, there will not be any opening or closing Market Commentary on March 29, 2024. 


Soybeans Tech Update

Grain Market Commentary

Wednesday, June 19, 2019

by Jacob Christy, Freedom Program Trader, The Andersons

A consolidating session for beans today after an impressive six day, 73c rally. Prices gapped higher to start the week, extending the third leg of a month long run to the upside. Prices scored a near term top Tuesday night and have since consolidated near the 200-day moving average. Despite the recent run, the market is now deeply overbought and in a precarious spot, sitting on the verge of scoring one of the most bearish chart formations in technical analysis.

Looking at the chart shows beans in a strong upward channel. Prices were able to clear the three major moving averages in a matter of four days on the most recent leg higher. However, the reversal candle yesterday, and subsequent liquidation today potentially signal the start of a corrective move lower. Support should come in at the recently broken moving averages, and again at the bottom of the trend channel. However, that shouldn’t be the bulls biggest concern.

With the market finishing on the lows today, prices sit just above Monday’s gap. If the market gaps lower tonight over the same price range of Mondays gap higher, beans will score what is called an island top. This top formation is widely regarded as the strongest reversal pattern there is. Add in the gap is over the even 900 mark and tonight’s open becomes critical.

An interesting time to be looking at soybean charts. On one hand you have the strong month-long upward trend, while on the other the reversal patterns of the past two days. Tonight’s open potentially holds the key. Score the island top and surely more selling will enter, while holding the gap probably instills more confidence to the bulls. Stay tuned.

The Andersons Tech Update June 19, 2019