Soybeans battle resistance

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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

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

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

Futures and options trading involves substantial risk and is not for everyone.

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