Chart of the day: Dalian soybean gathers momentum
Having trended lower for much of last year, Dalian soybean futures dramatically changed course in March – before the trade wars between US President Donald Trump and his Chinese peer, Xi Jinping. Momentum is more bullish than it has been in years and the moving average convergence divergence – or MACD – is at a record high. Though overbought on the RSI, we feel there is a chance for the contract to break above the top of the Ichimoku cloud. This follows the gap through 38 per cent Fibonacci retracement resistance on Monday, again on good volume as has been the case for the past 18 months. With the lagging line now at the thinnest part of the cloud of 26 weeks ago, a cap on this rally is unlikely.
Nicole Elliott is a technical analyst