July 30, 2009
Technical Analysis: US soy complex futures
November soy closed higher Tuesday (July 29) and nearer the session high on short covering in a bear market. Prices are still trapped in a trading range bound by solid support at the July low of US$8.81 1/4 and by solid resistance at US$9.40.
Very good growing weather in the US Corn Belt and more in the forecast will continue to work to limit buying interest in beans.
The next upside price objective for the bean bulls is to push and close November prices above solid technical resistance at US$9.40 a bushel. The next downside price objective for the bears is pushing and closing prices below solid technical support at the July low of US$8.81 1/4 a bushel.
First resistance for November soy is seen at Tuesday's high of US$9.32 1/2 and then at US$9.40. First support is seen at US$9.20 and then at Tuesday's low of US$9.06.
US$6.70 -------- the contract low
December soymeal closed higher Tuesday and nearer the session high on short covering in a bear market. Bears still have the near-term technical advantage as a seven-week-old downtrend is still in place on the daily bar chart.
The next upside price objective for the bulls is to produce a close above solid technical resistance at US$294.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at the July low of US$266.90.
First resistance comes in at Tuesday's high of US$285.90 and then at US$290.00. First support is seen at US$280.00 and then at Tuesday's low of US$276.10.
US$203.30 --- the contract low
December soyoil on Tuesday closed firmer, near mid-range and saw short covering in a bear market. Bears still have the near-term technical advantage.
The next upside price objective for the bean oil bulls is pushing and closing prices above solid technical resistance at last week's high of 36.24 cents. Bean oil bears' next downside technical price objective is pushing and closing prices below solid technical support at the July low of 32.80 cents.
30.00 --- the contract low
