Soybeans: Bullish Butterfly Pattern | What Traders Should ExpectCBOT:ZS1!
Soybeans: A Bullish Butterfly Pattern
Soybeans have recently completed a bullish butterfly pattern at $1018. This pattern suggests an expected price target of $1268, supported by strong bullish divergence signals.
Monitoring the Support Levels
We should closely monitor the support structure around $947. If this level holds, the bullish pattern remains intact. However, if the price breaks below this support, the pattern could shift into a bullish crab pattern, potentially targeting $810 at the 161.8% Fibonacci extension.
What Does This Mean for Traders?
Bullish Sentiment: The bullish butterfly pattern presents an opportunity for long positions with a target of $1268.
Risk Management: Be prepared with stop-loss orders, as the reversal pattern could fail, and the market might continue in the downtrend.
Support Levels: Watch the $947 support level closely. A break could indicate a shift in market direction.
Soybeans are currently in a bullish setup, with the potential for a price rise to $1268. However, stay alert to the $947 support level, as a break could signal a continuation of the downtrend towards $810.
Happy Trading,
André Cardoso
