SOYBEANS

Today's MARKET STATE SOYBEANS **NEUTRAL POSITIVE TRANSITION**


- Technically the MKT has the potential for a positive turn. Opportunity exists on both sides, however there is a better chance of an acceleration to the upside if the integrity of the previous session low remains intact. On the SELL side avoid UP and DIR FADE strategies until after the previous session low point has been broken. Until then, a better opportunity will be a UP REVERSAL strategy. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. DP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.
- On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current positive transition will continue. Keep aggressive position management on UP BREAKOUT strategies as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for negative reactions after a positive signal to FADE the DIR.


Today's PRICE MAP Performance for S

Wrap Up

Today the STRONG BAR breakout pattern was the "tell" to accept the UP BREAKOUT strategy in the SOYBEANS market.  The MKT was in a NEUTRAL POSITIVE TRANSITION market state with the sentiment bias below the market.  The press into the UP was the "tell" for whether or not the market was going to follow through on the transitional signal.  The STRONG BAR BREAKOUT above the UP was a solid psychological signal that confirmed the LONG opportunity from the UP.  The expectation was for a pop up to the UT2 and the explosive move today allowed traders to stay in the trade all the way up to the UT3 resistance level.  By realizing the positive momentum had staying power after holding above the UP on the retest, traders were able to get long the market on either the initial BREAKOUT from the UP or the retest of the UP.  The market maintained positive structure throughout the entirety of the trade and allowed traders to profit on the explosive upside move, that eventually corrected and closed the session just about flat on the day.