Weekly grain report

Focus: August Soybeans

August soybeans fell 41¢ last week, closing at $13.57-6. Price is above the weekly trendline and is expected to show continued weakness this week as prices test the long-term trendline at $ 12 . 45. If price does not hold at the trendline, then a further drop to test horizontal support at $ 11 . 20 (red arrow) can be expected. Since the last +ADX peak (blue line) was over 60, there are high odds of a retest of old highs following a successful test of support. A key thing to watch for is the –DMI (red line) to peak at or below the last +DMI peak (green arrow) which would indicate a lack of swing strength to the downside and a likely rebound off support.

 

Chart Courtesy of TradeStation.

 

Dr.