Technical Analysis #C-SOYB : 2021-05-28

[IFC Markets]

Recommendation for Soybean:Buy​

Buy Stop : Above 1476.2

Stop Loss : Below 1418.6



RSI : Neutral

MACD : Buy

Donchian Channel : Neutral

MA(200) : Sell

Fractals : Buy

Parabolic SAR : Buy

Chart Analysis​

The #C-SOYB technical analysis of the price chart on 4-hour timeframe shows #C-SOYB: 4H has breached above resistance line toward 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 1476.2. A pending order to buy can be placed above that level. The stop loss can be placed below the lower Donchian boundary at 1418.6. 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 export inspections suffered a moderate week-over-week decline. Will the SOYBEAN price continue rising? US Department of Agriculture reported soybean export inspections declined moderately to 7.1 million bushels over-week for the week ending May 21. Nevertheless the number is close to average of the traders expectations which ranged between 5.5 million and 9.2 million bushels. Lower export estimates are bearish for soybean price. However the current technical setup is bullish for #C-SOYB. And the fact that cumulative totals for the 2020/21 marketing year exports remain well above last year’s 2.066 billion bushels figure is also an upside risk for #C-SOYB.