Technical analysis: Will the soybean price continue rising?

Dmitry Lukashov IFC Markets

Recommendation for Soybean: Buy

Buy Stop: Above 1422

Stop Loss: Below 1264

RSI: Neutral

MACD: Buy

MA(200): Buy

Fractals: Buy

Parabolic SAR: Buy

Donchian Channel: Neutral

Chart analysis

The #C-SOYB technical analysis of the price chart on daily timeframe shows #C-SOYB,Daily has breached above the 200-day moving average MA(200), which is rising itself. We believe the bullish momentum will continue as the price breaches above upper Donchian boundary at 1422. A pending order to buy can be placed above that level. The stop loss can be placed below the lower Donchian boundary at 1264. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental analysis

US soybean stocks were down while export sales were up according to latest USDA reports. Will the SOYBEAN price continue rising? US Department of Agriculture reported soybean stocks were down and net sales were up - according to US Grain Stocks and Export Sales reports. Thus, soybeans stored on June 1, 2021 totaled 767 million bushels, down 44% from June 1, 2020. And soybeans net sales were up 62% from the prior 4-week

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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