After 8 days of level trading, the Soybeans future went up. Friday's session shows improvement: after dipping down to $1,380.5, CME Soybeans regained earlier losses and closed at $1,400 per bushel.
Despite posting gains on Friday, Soybeans slid below its 21 day Simple Moving Average at $1,383.63 during the last session — an early indicator that a negative trend could be emerging. Bollinger Band® analysis indicates that current price action is approaching the upper band at $1,408.33, thereby suggesting that the Soybeans future is becoming overvalued. The Soybeans future could be slowing down soon as it approaches resistance at $1,407.83. Of course, crossing it might suggest further gains are ahead.
The Soybeans future is likely to reverse course and start pointing downward in the short term.
This rally in CME Soybeans's price coincides with other Grains as Rough Rice added 0.95% and closed around $16.34 Friday. Notably, Oats rose 2.37% Friday and closed at $358.5.
Trading mostly sideways for a month. CME Soybeans is now trading 20.22% below the significant high of $1,746.75 it set around 4 months ago.