$SOYB / $ZS_F: Weekly and monthly trends are upSoybeans have been consolidating and shorts have been hitting the same level near the invasion day highs for 3 months give or take, today price broke out and confirmed a weekly trend signal. The monthly timeframe indicates beans can rally until October 2022, so, getting lower timeframes to turn bullish again presents us with a massive reward to risk long opportunity here. I bot July futures / $SOYB calls today, aiming to capture the move shown in the continuous chart here. If you want you can join the trade when beans futures open tonight, keep in mind you will need to roll the position to the next contract month 8 calendar days before the expiration date give or take (you'll see volume is high on that day), or, to make it simpler, buy the Nov 18 $31 strike $SOYB calls. If you buy futures, calculate risking a drop under last week's low, if you buy options, calculate risking 1-5% of your capital in call premium. Over time we might be able to bet on higher strikes as well, or trade around the position in shorter term timeframes (often good to delta hedge calls with 15m setups on the short side if you're good at scalping, then use proceeds to add to the call position for increased exposure without increasing risk).
Best of luck!
Cheers,
Ivan Labrie.
Soybeans
Soybean Technical Update (6.8.22)Soybeans (July)
Technicals: July soybean futures were able to defend trendline support in the prior two sessions which helped spark a rally in yesterday’s trade. That rally has led to follow-through buying in the overnight/early morning trade with July futures making new contract highs. The market has been up here a few times in the past few weeks but failed to find more buyers. Time will tell if this time is different. With the market at new contract highs, the task of finding the next meaningful resistance point becomes more difficult. Going off the continuous chart you could use the February 24th high for the March contract, 1759 ¼ and the April 22nd high from the May contract, 1757 ½. Finding meaningful points above that is a game of pin the tail on the donkey.
Bias: Neutral
Previous Session Bias: Neutral
Resistance: 1757 ½-1760**
Pivot: 1750
Support: 1717-1720***, 1690**, 1673-1679 ½***
Soy beans Futures ( ZS1! ), H1 Potential for Bullish bounceType : Bullish Bounce
Resistance : 1734
Pivot: 1702
Support : 1687
Preferred Case: With price moving above our ichimoku cloud , we have a bullish bias that price will rise to our 1st resistance at 1734 in line with the 127.2% Fibonacci extension from our pivot of 1702 in line with the horizontal pullback support and 23.6% Fibonacci retracement.
Alternative scenario: Alternatively, price may break pivot structure and head for 1st support at 1687 in line with the horizontal overlap support and 50% Fibonacci retracement .
Fundamentals: No Major News
Soy beans Futures ( ZS1! ), H1 Potential for Bullish bounType : Bullish Bounce
Resistance : 1702'6
Pivot: 1684'0
Support : 1661'4
Preferred Case: With price being above our ichimoku cloud , we have a bullish bias that price will rise to our 1st resistance at 1702'6 in line with the swing high resistance and 61.8% Fibonacci projection from our pivot of 1684'0 in line with the horizontal overlap support and 23.6% Fibonacci retracement .
Alternative scenario: Alternatively, price may break pivot structure and head for 1st support at 1661'4 in line with the horizontal overlap support, 38.2% fibonacci retracement and 61.8% Fibonacci projection .
Fundamentals: No Major News
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Soy beans Futures ( ZS1! ), H1 Potential for Bullish bounceType : Bullish Bounce
Resistance : 1702'6
Pivot: 1692'6
Support : 1687'4
Preferred Case: With price being above our ichimoku cloud , we have a bullish bias that price will rise to our 1st resistance at 1702'6 in line with the swing high resistance and 61.8% Fibonacci projection from our pivot of 1692'6 in line with the horizontal pullback support and 50% Fibonacci retracement .
Alternative scenario: Alternatively, price may break pivot structure and head for 1st support at 1687'4 in line with the horizontal swing low support and 78.6% Fibonacci retracement .
Fundamentals: No Major News
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary, and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interest arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed on the website.
Soy beans Futures ( ZS1! ), H1 Potential for Bearish ContinuatioType : Bearish Continuation
Resistance : 1622'6
Pivot: 1611'2
Support : 1581'0
Preferred Case: With price expected to reverse off the ichimoku resistance and Fibonacci confluence area, we have a bearish bias that price will drop to our 1st support in line with the horizontal swing low support from our pivot of 1611'0 in line with the Fibonacci confluence area.
Alternative scenario: Alternatively, price may break pivot structure and head for 1st resistance in line with the 50% Fibonacci retracement and 100% Fibonacci projection.
Fundamentals: No Major News
Soy beans Futures ( ZS1! ), H1 Potential for Bearish ContinuatioType : Bearish Continuation
Resistance : 1622'6
Pivot: 1611'2
Support : 1581'0
Preferred Case: With price expected to reverse off the ichimoku resistance and Fibonacci confluence area, we have a bearish bias that price will drop to our 1st support in line with the horizontal swing low support from our pivot of 1611'0 in line with the Fibonacci confluence area.
Alternative scenario: Alternatively, price may break pivot structure and head for 1st resistance in line with the 50% Fibonacci retracement and 100% Fibonacci projection.
Fundamentals: No Major News
Soy beans Futures ( ZS1! ), H1 Potential for Bearish ContinuatioType : Bearish Continuation
Resistance : 1622'6
Pivot: 1611'2
Support : 1581'0
Preferred Case: With the ichimoku indicating some bearish momentum, we have a bearish bias that price will drop to our 1st support in line with the swing low support at 1581'0 from our pivot of 1611'2 in line with the 38.2%, 50% Fibonacci retracement and 78.6% Fibonacci projection.
Alternative scenario: Alternatively, price may break pivot structure and head for 1st resistance in line with the 50% Fibonacci retracement and 100% Fibonacci projection.
Fundamentals: No Major News
Soybean Futures (ZS1!), H1 Potential for Bearish ContinuationType : Bearish Continuation
Resistance: 1674
Pivot: 1662'6
Support : 1644
Preferred case: With price moving below the ichimoku cloud, we see a potential bearish continuation from our pivot level of 1662'6 which is in line with 50% Fibonacci retracement and horizontal pullback resistance towards our 1st support level of 1644 which is in line with the horizontal pullback support.
Alternative scenario: Alternatively, price may break our pivot structure and head for 1st resistance level of 1674 in line with 61.8% Fibonacci retracement and horizontal pullback resistance.
Fundamentals: No major news.
Soybean Futures (ZS1!), H1 Potential for Bearish ContinuationType : Bearish Continuation
Resistance: 1662'6
Pivot: 1653'4
Support : 1626'2
Preferred case: With price moving below the ichimoku cloud, we see a potential bearish continuation from our pivot level of 1653'4 which is in line with 38.2% Fibonacci retracement and horizontal pullback resistance towards our 1st support level of 1626'2 which is in line with the horizontal swing low support.
Alternative scenario: Alternatively, price may break our pivot structure and head for 1st resistance level of 1662'6 in line with 50% Fibonacci retracement and horizontal pullback resistance.
Fundamentals: No major news.
Soybean Oil Futures (ZL1!), H1 Potential for Bearish ContinuatioType : Bearish Continuation
Resistance: 83'30
Pivot: 82'45
Support : 79'93
Preferred case: With price expected to reverse off the resistance of the ichimoku cloud, we see a potential bearish continuation from our pivot level of 82'45 which is in line with 38.2% Fibonacci retracement and horizontal pullback resistance towards our 1st support level of 79'93 which is in line with the horizontal swing low support and 78.6% Fibonacci retracement.
Alternative scenario: Alternatively, price may break our pivot structure and head for 1st resistance level of 83'30 in line with 50% Fibonacci retracement and horizontal swing high resistance.
Fundamentals: No major news.
Soybeans and Rate of Change PotentialBeans – 3mo Continuous: Comparing our current Bull market with the previous major bull markets of the past 50 years. Currently the 24 mo ROC is at 92%.
If beans move to the upper trendline in the $20.00 area it would be a 130% ROC and would “pale in comparison” to the 06-08 and 71-73 bull markets.
A 200% ROC on the charts would look very ugly to some and wonderfull to others with a price area at $26.00
**Disclosure** Do not take this as trading advice. The potential is there for higher markets, but anything could keep us from getting above today’s High.
Soybean Futures (ZS1!), H1 Potential for Bearish ContinuationType : Bearish Continuation
Resistance: 1704'6
Pivot: 1687'6
Support : 1659'2
Preferred case: With price moving below the ichimoku cloud, we see a potential bearish continuation from our pivot level of 1687'6 which is in line with 38.2% Fibonacci retracement and horizontal pullback resistance towards our 1st support level of 1659'2 which is in line with the horizontal swing low support.
Alternative scenario: Alternatively, price may break our pivot structure and head for 1st resistance level of 1704'6 in line with 61.8% Fibonacci retracement and horizontal pullback resistance.
Fundamentals: No major news.
Soybean Futures (ZS1!), H1 Potential for Bearish ContinuationType : Bearish Continuation
Resistance: 1704'6
Pivot: 1687'6
Support : 1659'2
Preferred case: With price moving below the ichimoku cloud, we see a potential bearish continuation from our pivot level of 1687'6 which is in line with 38.2% Fibonacci retracement and horizontal pullback resistance towards our 1st support level of 1659'2 which is in line with the horizontal swing low support.
Alternative scenario: Alternatively, price may break our pivot structure and head for 1st resistance level of 1704'6 in line with 61.8% Fibonacci retracement and horizontal pullback resistance.
Fundamentals: No major news.
Soybean Oil Futures (ZL1!), H1 Potential for Bearish ContinuatioType : Bearish Continuation
Resistance: 83'13
Pivot: 81'56
Support : 79'99
Preferred case: With price expected to reverse off the resistance of the ichimoku cloud, we see a potential bearish continuation from our pivot level of 81'56 which is in line with 61.8% Fibonacci retracement and horizontal overlap resistance towards our 1st support level of 79'99 which is in line with the horizontal swing high resistance.
Alternative scenario: Alternatively, price may break our pivot structure and head for 1st resistance level of 83'13 in line with 38.2% Fibonacci retracement and horizontal pullback resistance.
Fundamentals: No major news.
Soybean Futures (ZS1!), H1 Potential for Bullish rise!Type: Bullish rise
Resistance : 1726'4
Pivot: 1704'6
Support : 1688'4
Preferred case: With price moving above the ichimoku cloud and the ascending trendline, we have a bullish bias that price will rise to our 1st resistance in line with the 1726'4 in line with the swing high resistance from our pivot of 1704'6 in line with the 50% Fibonacci retracement and the horizontal overlap support.
Alternative scenario: Alternatively, price may break pivot structure and head for 1st support at 1688'4 in line with the 50% Fibonacci retracement and the horizontal swing low support.
Fundamentals: No major news.