Pro Farmer Senior Market Analyst Rich Posson says July futures likely placed a Level 1 business-cycle low four weeks ago, but there are alternate model scripts allowing for a second-chance bottom this month. "Prices should rally from such a bottom into June for a Level 2 top," says Posson. "Funds have turned to the buy side and although of narrow spread, the five-week stochastic is working higher from a buy signal. Trade above $9.97 1/2 on a weekly close would open the door for a rally into the Level 2 top with an objective range of $10.15 to $10.52."
In the July soybean chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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