Soybeans Break Through Double Top On Way To New High
Soybeans cruised to a new high today, breaking through a double top en route. In late September, a new high was established at 1012, and that level has been tested for about the last week and a half. Today, Soybeans managed the breakthrough with a close of 1031 for the December contract.
Since this price has remained fairly stable for the last few trading sessions, the moving averages have not been seriously violated. The 15-day moving average had acted as a support level in the sideways trade over the last few days, before the movement away to the upside today. The 25-day moving average, meanwhile, has lagged over the last 10 days, but is now on its way up. Since the fast stochastics were above 80, this indicated a violation of the reversal indicator.
Elsewhere, Crude Oil continued its march to $100, spiking briefly above $97 today before closing with another new high at 96.82. Oil traders will be keeping an eye on inventory numbers tomorrow, with the EIA release set for 10:30 AM Eastern time. With tensions in the Middle East continuing to fester, Crude figures to be a closely watched market over the next several weeks.
Mike Tosaw, Director of Education
