April 28, 2009
CBOT July Soy hit four-week low
Chicago Board of Trade July soy futures sold off sharply early Monday (April 27), hitting a fresh four-week low of US$9.75 1/4 a bushel.
Prices, however, rebounded and were trading near mid-range and trading above the key psychological price level of US$10.
Price action Monday did negate a seven-week-old uptrend on the daily bar chart for July soy. Prices have backed well down from the April high of US$10.64 1/2 a bushel.
Monday's price action will be extra important for the soy futures markets. A low-range close would produce significant chart damage to suggest further downside price pressure in the near term. However, a close near the session high in July beans would suggest that Monday's price action was just a knee-jerk reaction to the swine flu scare and that soy prices can at least trade in a sideways range near term.
The soy bears would gain additional downside technical momentum by pushing and closing July futures prices below solid technical support at Monday's low of US$9.75 1/4. The bulls would regain some upside near-term technical momentum by producing a close above solid technical resistance at US$10.40 a bushel.
