Jim Wyckoff
2 min read
November soybean futures (ZSX25) present a buying opportunity on more price strength.
See on the daily bar chart for November soybean futures that prices are starting to trend higher and have just hit a four-month high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the red MACD line has just crossed above the blue trigger line and both lines are trending up. The soybean bulls have the near-term technical advantage.
Most of the U.S. soybean crop is entering its more important months of plant growth, with August being the most critical. History shows that odds favor some degree of a weather-market scare developing in the coming weeks, which would boost prices. Also, the U.S. is starting to nail down trade agreements with its major counterparts. U.S.-China trade relations have also improved recently. These elements, especially a U.S.-China trade dialogue, are friendly for the soybean market, arguing for better U.S. soybean exports in the coming months. China is a major importer of soybeans.
A move in November soybeans above chart resistance at this year’s high of $10.75 3/4 would become a buying opportunity. The upside price objective would be $11.85 or above. Technical support, for which to place a protective sell stop just below, is located at $10.30.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
