Soybeans Tech Update

A firmer session and shaking off early weakness. Beans have been on a pretty violent ride since last Thursdays blow-off top to new contract highs. Despite the back and forth of the past few sessions, the longer-term chart flagging formation remains intact, for now.

Bean futures had a pretty poor reversal session yesterday after gapping higher but finishing with sharp losses. Coupled with last week’s blow off reversal it seemed the stage was set to confirm a top. However, the market once again held its 26-day exponential day moving average along with the recent flagging bottom. Prices finished today with an equally positive reversal to contrast yesterday’s negative, keeping the bears frustrated for at least another day.

From here the market is still looking for a confirmation close above the flagging top at 1407 to accelerate gains. While to the downside, the flag bottom and 26-day exponential moving average remain support. This begins to coil the market as support rises to meet sideways resistance. The inevitable break of the flag likely tips the technical scale. That break will happen before the month ends. Stay tuned.