Fundamentally even the grains bounced around yesterday on the news of the Malaysian flight shot down over the war torn area near Ukraine/Russia.
The September soybeans (CBOT:SNQ14) which I am following closely had about a 29 cent/bushel trading range. They ended the day down about 3 cents, after rallying up over 25 cents/bushel right on the news.
How long can my first area of technical resistance hold? Well some say it is like a carpenter pounding a nail through a two by four, eventually it pushes through. I believe we will hold though and go on to make new lows.
Technically, my favorite technical indicators show me that soybeans are still in a "SUPER-TREND" down. This happens when the 9-day simple-moving average (SMA) (red line) crosses down and under the 20-day SMA (green line) as both indicators point lower while the market trades below the 9-day SMA. We have that now, but the market continues to bump up against the 9-day SMA and even traded above it yesterday. However we closed below it and we are below now as you see on the chart below.
I figured this out by going back and forth from a daily to a weekly chart by the click of a mouse that I found here, which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I'm using it then maybe my reader's should check it out. Yes?
About the Author
Matt McKinney is a full-service options broker at Zaner Group both buying and selling energies, metals, grains, softs, currencies and the 30-year bond market. My strategies include time frames of 45-120 days with the ability to liquidate at any time. I can be reached at mmckinney@zaner.com.
Whether you're a novice trader who wants to participate in options on futures or an experienced trader, you can also check out my blog at http://www.mmckinneyfutures.com/.
Futures and options trading involves substantial risk and is not for everyone.