The November soybean market has been on a nice uptrend since the lows from August 8th, and we are seeing some selling coming after we topped out near 1409-5. Looking on the fundamental side, there is concerns for the continued hot and dry weather headed into next week which would support higher process, and the Mississippi water levels continue to decline, having a strong impact on basis.
Seasonally speaking, this is the time of the year where the market attempts to create a new low in the near term, but we are currently trading significantly higher than what we typically see for this time of year.
On the technical side, even though we have seen some selling throughout this week, we are still holding out above some strong levels, where old resistance is acting as support. If the beans continue to sell off on the November contract, there is support near 1367-7 where bulls would need to defend to continue the prices moving higher in the uptrend.
There is also strong trendline support from the May lows, and a break and a close below that level would flip the bias from an uptrend to more neutral or bearish. The average true range (ATR) on this contract is near 25 cents, and so if the market continues lower, we will could see these levels tested in the next few trading days.
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Seasonally speaking, this is the time of the year where the market attempts to create a new low in the near term, but we are currently trading significantly higher than what we typically see for this time of year.
On the technical side, even though we have seen some selling throughout this week, we are still holding out above some strong levels, where old resistance is acting as support. If the beans continue to sell off on the November contract, there is support near 1367-7 where bulls would need to defend to continue the prices moving higher in the uptrend.
There is also strong trendline support from the May lows, and a break and a close below that level would flip the bias from an uptrend to more neutral or bearish. The average true range (ATR) on this contract is near 25 cents, and so if the market continues lower, we will could see these levels tested in the next few trading days.
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.