Soybeans Close to Key Resistance

The Commodity Specialist view - Last year’s recovery in Soybean prices has so far continued in 2011. However, key resistance levels have now been approached on the long term chart which puts us on the lookout for a better pullback phase.

• WEEKLY CONTINUATION CHART: After the earlier breach of the 1291.25 2009 high the market has continued higher, now nearing dual resistance from a bull channel top projection and 76.4% retracement level at 1453.75. We await reaction around here, expecting to see some form of resistance.
• DAILY CHART - MAR-11: Current upside focus is on the 1455 area, a 1.618 swing projection off the prior Nov setback. This ties in nicely with resistance on the Weekly chart. We wait to see if the recovery from mid-Nov low is a final upleg prior to a better correction. Near support has come from around the 1354.50 12-Nov high, although this is not a significant level. Further supports are calculable only after a temporary top looks to be in place.

[For the complete and illustrated version of this and future Updates be sure to sign up at www.sevendaysahead.com]