Soybean Upmove Halted By 76.4% Resistance

The Commodity Specialist view - In our last Soybean Update we noted key resistance on the longer term chart which has since been tested. As expected, a pullback has been prompted and initial support has been found – bears need further evidence before gaining in confidence.

• SOYBEANS - WEEKLY CONTINUATION CHART: See how the recent upmove has tested dual resistance from a bull channel top projection and 76.4% retracement level at 1453.75. Reaction here has, not surprisingly, been negative. The 1291.25 2009 high has provided s/term support, but will it hold?
• SOYBEANS - DAILY CHART MAY-11: The pullback from resistance around the 1.618 swing projection off the prior Nov setback, at 1463, has breached s/term support from the 1356.00 09-Nov high, but so far been held by the projected channel base. With important resistance seen on the Weekly continuation chart above there is a good chance that s/term strength will be temporary, ahead of further bear pressure. A subsequent break of the channel base would signal loss of momentum, inviting a challenge to the 1254.00 38.2% pullback level before focus can shift to lower targets.

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