Soybean meal continues to perform well as price has made repetitive higher lows and higher highs throughout 2014. Near-term momentum in the meal favors a bullish outlook above the 471.0 support pivot on the chart, with bullish longer term sentiment in effect above 461.4. There does appear to be some good technical S/R levels forming in the soybean meal market for traders to utilize in their trading. Near-term technical resistance could be seen around 484.0, 488.6 and 493.2 respectively.
Bullish traders could use these structural pivots as profit objectives when assessing potential trading opportunities in the market. Furthermore, there will likely be significant support on the chart from 471.0 – 474.0. In the event that price corrects down to this support area, bullish traders could potentially use this opportunity to enter the market at a better price with relatively well-defined risk/reward parameters. Any sustained weakness below 471.0 will likely find additional support in the area of 465.8 – 467.0. Until price begins to show signs of technical weakness on the chart, the higher probability trading opportunity appears to remain on the long side of the soybean meal market.
Soybean Meal 30-minute Bar Chart (e-Signal)