Commodities: SOYBEANS H'10 - BEAR TREND ACCELERATION
Technically the MKT is in a BEAR TREND ACCELERATION position and is vulnerable to the offer. Any positive corrective action is expected to be short lived with only one upside "stop squeeze", topping out below the 1041-0 Inflection Pivot if the negative momentum is going to play out. Any held strength above here is a sign that the trade will turn digestive. This does not take away from the negative bias but does limit the profit potential for any new sales in the session.
On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the 1041-0 Inflection Pivot. BREAKOUT strategies below 1006-4 should just "go", so do not risk much. FADE strategies against 1035-2 and 1041-0 are recommended over REVERSAL strategies as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn.
On the BUY side avoid REVERSAL strategies off the 1006-4 and 1000-6 support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above the 1029-4 initial resistance are a long shot, so risk less and go for more. Any BUY FADE off 1006-4 or 1000-6 should have confirmation and are not recommended if the integrity of the previous session high is intact. After a break in the negative structure confirmed support levels can be used for short term reactions using aggressive position management.
Note: The MKT is in an aggressive sell posture. If the previous session high is intact its just a matter of time before the sellers try to overwhelm the MKT. Look for excuses to get short. If the previous session high is breached opportunity will be on both sides of the MKT, however the bias still rests with the Bears.
JS
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