July 28, 2009
CBOT soy trapped in sideways trading range
Chicago Board of Trade November soy futures are trapped in the middle of a sideways trading range at lower levels on the daily bar chart.
That trading range is bound by strong technical resistance at $9.40 a bushel and by strong technical support at the July low of US$8.81 1/4.
The direction in which November soy push out of the aforementioned trading range is likely to be the direction of the next significant price trend in the market.
The bears do presently hold the near-term technical advantage in November beans, as prices are still in a six-week-old downtrend from the early June high of US$10.99 1/2.
Also, seasonality studies show soybean futures prices trending sharply lower from the August into the October timeframe.
