Focus: November Soybeans
For most of last week, November Soybean prices moved sideways in a range. On Friday, soybeans closed at $12.01’2, up 25¢ for the day. A short-term rebound may be fueled by a recent U.S. Department of Agriculture report which forecasted a smaller than expected fall crop (down more than 1%). Further upside in prices this week could establish a double bottom (daily chart) and lead to a retest of the August highs near $13.45. Price is still below a falling 50 EMA, but there is bullish ADX divergence: price made equal lows in September (compared to August), while ADX made a lower high. A short-term uptrend would likely to meet first resistance near the 50 EMA.
Dr. Schaap will be away for the next two weeks checking the rice fields of the Po Valley. Arriverderci e ci vediamo in ottobre.
Chart Courtesy of TradeStation
Dr. Charles B. Schaap transitioned from health care to wealth care in the nineties. He is the author of ADXcellence —Power Trend Strategies and Invest with Success—Big Profits for Small Investors. Dr. Schaap is a commodity futures strategist and recognized authority in technical analysis of the financial markets. His website is www.adxcellence.com
