Soybeans (CBOT:ZSX14) continue to decline amid ample supply and until price can get back on its feet, further declines could be anticipated in this market.
Yesterday, traders saw the beans find support around the psychological support level at 1100’0. Look for this level to remain relevant through the end of the week. Below here, additional significant support can be anticipated at 1088’0 on the chart. The lack of technical structure below this level has the potential to open to door for continued declines in Nov. beans and traders should avoid trying to pick a bottom in this market.
Intermediate and short-term biases both favor a bearish outlook in beans and this negative sentiment is confirmed by the oscillation of the RSI indicator between 60-20. One potential strategy to implement in this market would be to sell corrective rallies into resistance in anticipation of a reversal and further downside price action.
Nov. ‘14 Soybeans 30-minute Bar Chart (e-Signal)
1117’4 and 1128’0 are the closest resistance pivots from which to keep in mind, followed closely by the 1147’4 and 1160’4 levels. Look for the negative momentum to continue to exercise control over price in this market until further notice.