Soybeans Update August 2015 (M)

Soybeans have hit new yearly lows so let’s review where things stand using the monthly chart.


Long term analysis outlined in February 2015 called for a final bear market low down around $600 however I expect a significant bear rally before then. In the meantime, we continue to await an intermediate low before said bear rally kicks off.
The PSAR indicator has been bearish for a long time now and shows no sign of being busted anytime soon.
The Bollinger Bands show price finding resistance at the middle band and now has the lower band in its sights again. The lower band stands around $836 and price hitting that level appears imminent.
I have drawn a horizontal line denoting support from the December 2008 low at $776 and I’d like to see price turn back up before busting that level. A double bottom there is not out of the question.
The RSI looks set to throw up a bullish divergence on the coming low.
So while the downtrend continues the expectation of a significant bear rally remains unchanged. We just await the market now.


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