IFC Markets - Analytics

    IFC Markets

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    Technical Analysis #C-SOYBM : 2015-04-14

    Bearish triangle

    Let’s examine the continuous futures on SOYB on the daily chart. The price formed a triangle with a bearish bias. The fractal support at $953 was confirmed twice, but was broken with confidence after the ParabolicSAR reversal. At this moment the bearish bias of the Donchian Channel was formed. However, we deem that it’s still not the time to go short as RSI-Bars oscillator has still not confirmed the breakout, and it may result to be false. The last RSI-bar hasn’t crossed the support level at 29% yet.

    SOYB

    Conservative traders are recommended to wait for the oscillator’s support level to be overcome and immediately open a short position. Stop loss is to be placed near the price resistance level at $994.6. This mark is confirmed by Parabolic historical values, the upper Donchian Channel boundary, and also by one of the triangle sides. After the order placing, Stop loss is to be moved every day at the next fractal high, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point.

     

    Position Sell
    Stop loss above 994.6

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