Good morning. It's Tuesday, June 9, and about 9:35 a.m.
Here's a quick market update. I just want to point out a few support zones developing in the soybean market.
Soybeans have been under heavy pressure, driving down toward the 200-day moving average in the 11.24 area. At the same time, we've been hovering right around the 50% retracement level. If you look at the move from the January low to the high made during the Chinese summit, the market has been hanging around this 11.34 level since last Tuesday.
Now, we're not exactly bouncing aggressively out of here, I'll give you that. But the market does appear to be searching for some stability.
Another thing worth noting is the old charting rule that prior resistance can become new support. After breaking through the October highs, the market initially blew right through that level, then came back, found support, and eventually rallied to the summit high.
For now, this is simply an observation of a market sitting on some important support. Maybe all we get is a small dead-cat bounce before moving lower again. Soybeans still carry more open interest than corn and wheat, so there is certainly room for additional liquidation if traders decide to head for the exits.
Still, these support zones are worth watching closely.
Like and follow for more market observations and chart analysis.
*This is not trading advice; past results are not indicative of future results
/NVIDIA%20Corp%20video%20chip-by%20Antonio%20Bordunovi%20via%20iStock.jpg)
/Space/Rocket%20lift%20off%20by%20Alones%20via%20Shutterstock.jpg)
/A%20close-up%20of%20an%20AMD%20office%20by%20gehapromo%20via%20Adobe%20Stock.jpeg)