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Soybeans CBT Futures (S) - Reaction High »» Daily Summary Analysis
By: Marty Armstrong | September 19, 2020

Soybeans CBT Futures closed above our indicating ranges on the Daily level. It closed today at 10434 and is trading up about 9.21% for the year from last year's settlement of 9554. Presently, this market has been rising for 4 months going into September suggesting that this has been a bull market trend on the monthly time level. while it is still trading above last month's high of 9666.

While the historical perspective of the of this market included a decline from the major high established back in 2012 moving into a major low in 2019, the market has bounced back for the last year. The last Yearly Reversal to be elected was a Bearish at the close of 2016.

This market is still holding neutral on the yearly level of our indicating models trading between overhead system resistance and underlying support. However, it remains in a negative posture on the quarterly level warning it is not breaking out to the upside right now and there is still overhead resistance. The monthly is in a positive position pushing toward near-term resistance and the weekly short-term remains bullish at this time.

Focusing on our perspective using the indicating ranges on the Daily level in the Soybeans CBT Futures, this market remains in a bullish position at this time with the underlying support beginning at 10056.

On the weekly level, the last important high was established the week of September 14th at 10466, which was up 21 weeks from the low made back during the week of April 20th. So far, this week is trading within last week's range of 10466 to 9850. Nevertheless, the market is still trading upward more toward resistance than support. A closing beneath last week's low would be a technical signal for a correction to retest support.

The broader perspective, this current rally into the week of September 14th reaching 10466 has exceeded the previous high of 9100 made back during the week of July 20th. Right now, the market is above momentum on our weekly models hinting this is still bullish for now as well as trend, long-term trend, and cyclical strength. Looking at this from a wider perspective, this market has been trading up for the past 11 weeks overall.

Interestingly, the Soybeans CBT Futures has been in a bullish phase for the past 15 months since the low established back in May 2019.

Critical support still underlies this market at 8625 and a break of that level on a monthly closing basis would warn that a sustainable decline ahead becomes possible. Nevertheless, the market is trading above last month's high showing some strength.

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