SOYBEANS breaks back below 20-day moving average
Soybeans (SOYBEANS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SOYBEANS finished the week 1.13% higher at 892.75 after losing $3.00 (-0.33%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SOYBEANS as at Feb 14, 2020):
Friday's trading range has been $9.25 (1.03%), that's below the last trading month's daily average range of $11.22. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SOYBEANS.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 889.75 (S1). The market closed back below the 20-day moving average at 892.77. After having been unable to move lower than 888.50 in the prior session, the contract found buyers again around the same price level today at 890.00. The last time this happened on Tuesday, SOYBEANS gained 0.76% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 899.75 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Soybeans. Out of 568 times, SOYBEANS closed higher 49.65% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.23% with an average market move of 0.31%.
With four out of the other five Agriculture Commodity Markets closing lower today, the ones that stand out on the negative side are SOYBEANOIL losing -0.64% and CORN closing -0.39% lower. On the flipside the best performer has been OATS closing 0.17% higher. Read more