Tuesday, May 27, 2008

Soybeans Update

The beans continue to trace out a pattern that will see a substantial move based upon the direction of breaking through and closing on either side of the lines on the chart.

I remain short the beans on the side with the big money commercial traders expecting a sharp breakdown in prices.

This continues to be a very low risk trade as we are currently quite close to the high side of the pattern. A close above the upper line will have us cover our short positions. A break below the lower line should bring strong profits in a fairly short period of time.

Recently most of the commodities have been in lockstep with Crude Oil, so if crude oil prices should break lower then look for most of the commodity complex to follow suit.

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