Soybeans Futures: Is It Time To Go Long?
2022.05.25 04:10
Soybeans Futures are in a strong bull trend and above their Ichimoku Clouds on the weekly, daily, and hourly charts. The Soybean market has set up a bull flag congestion zone and looks like it could head higher.
Soybean Weekly Ichimoku Cloud Chart
Soybean futures weekly chart.
The weekly chart started its uptrend in May of 2020. Notice how the Ichimoku Cloud held price on the 2 Wave downdraft indicating significant support. The Span B of the Ichimoku Cloud often acts as support or resistance, and in this case, it acted as support.
A strong 3 Wave followed, and the price went flat, setting up a typical-looking bull flag. The pole formed from the 2 Wave to the 3 Wave, and the top congestion zone shows the flag.
Most of the time, markets in this configuration break up. The Ichimoku Cloud Lagging line is clear of price, the price momentum is up, and Soybeans could head higher to continue their bull trend. Should Soybeans break upward, the price could reach the target zone.
Soybean Daily Ichimoku Cloud Chart
Soybean futures daily chart.
The price on the daily chart has a similar configuration to the weekly chart. Soybeans have been trending up, and prices keep pushing above the Ichimoku Cloud. The weekly flag can be seen as a daily flag with a more extended congestion zone. Price has created a W pattern inside the flag. At the end of last week, the price indicated, Soybeans may begin to head higher.
Should the price break above the flag’s congestion zone, shown by the highs of the 3 Wave and the 5 Wave, you could buy. Look for prices to continue to the top of the target zone. An entry on this daily time frame sets up a bullish position for the longer-term weekly targets.
Soybean 60-Minute Ichimoku Cloud Chart
Soybean 60-minute chart.
Soybeans continue to be in an uptrend on the 60-minute chart. Price headed to the targets and backed off. A congestion zone has been set up around the equilibrium of the Ichimoku Cloud.
When markets break up, as seen from the 6 Wave to 7 Wave, the price will often retrace and congest until it encounters the Ichimoku Cloud. The old 5 Wave and Ichimoku Cloud Span B are acting as support. If this support holds the price, look for Soybeans to continue upwards.
Once Soybeans resume their uptrend on the 60-minute chart, watch for the daily chart to push higher.
