Wednesday, December 26, 2007

Soybeans approach lock limit before retracing!

Soybean prices today swelled the most I have seen for a single day in the time I have traded them, increasing more than 42 cents before retracing somewhat. Lock limit is 50 cents for soybeans. In my trading soybeans, I have never seen this lock limit reached. The Monday close is shown as the pink dotted line in this chart, and the lock limit price is the pink line at the top of the chart.

Even though selling pressure is quite high, as evidenced by the Klinger volume indicator in the subgraph shown, prices have not abated very much. This tells me that we are seeing some profit-taking, but that prices remain well supported for further price rises. I will go long again with additional positions when the Klinger and EMA indicators on my 2nd chart both turn UP again on the tick chart shown below. They appear poised soon to do that.