July soybean futures (ZSN25) present a buying opportunity on more price strength.
See on the daily bar chart for July soybean futures that prices have made a solid rebound from the April low, with recent sideways price action forming a bullish pennant pattern. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the blue MACD line is above the red trigger line and both lines are trending up. The bulls have the overall near-term technical advantage.
Fundamentally, it can be argued that the soybean futures market has held up remarkably well even as the broader market has sold off in response to global trade tensions and a brewing U.S.-China trade war. China is a major importer of U.S. soybeans. This is a sign of underlying soybean market price strength. Also, the U.S. soybean planting and growing season is right around the corner. More years than not, some degree of a weather-market rally occurs in soybean futures in late spring into the summer.
A move in July soybean futures prices above chart resistance at the April high of $10.59 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be $11.75 or above. Technical support, for which to place a protective sell stop just below, is located at $10.20.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
