CBOT soy bulls gains momentum, more work to do

May soy futures at the CBOT have seen a good rebound from the March low of US$9.21 3/4 a bushel. In fact, a choppy, gentle uptrend is in place from the early February low of US$9.11.

While the soy market bulls do have a bit of upside technical momentum on their side, they have more work to do in the near term to suggest the uptrend can be sustained and accelerated.

There is strong overhead chart resistance for May soy located at the February spike high of US$9.85. Above that lies major psychological resistance at US$10.00 a bushel.

It will take a close above US$9.85 in May soy in the near term to continue the price uptrend on the daily chart and to provide the bulls with fresh upside technical momentum. Below those key chart levels lies technical resistance in this week's high of US$9.76 1/2.

On the downside, chart support for May soy is located at this week's low of US$9.53 1/4, at US$9.50 and then at US$9.41. A close below the last "reaction low" on the daily bar chart, which is the March low of US$9.21 3/4, would produce serious near-term technical damage to suggest a challenge of psychological support at US$9.00 a bushel, or below.