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SOYB NIB Soybeans Cocoa Outlook

$SOYB (continuous contract) is trading at the 948ish support level following a recent divergent low & extreme oversold reading. While there is a decent chance of a rally off this support level, the ideal scenario would be one last thrust down towards the 920ish support level and/or this trendline with one more divergent low before a substantial rally begins. We don't always get a security to fall to our ideal buy point so while I favor the scenario outlined in the chart below, I will be on watch for signs of a potential reversal in soybeans around current levels in the coming sessions.

$SOYB daily May 24th close

$SOYB daily May 24th close

Looking at the daily chart of NIB (Cocoa ETN), I've watching the price action since NIB fell to the S2 support level yesterday (2nd chart below), waiting to see if that level held which, so far, it has. On watch for a potential long entry although a long here with stop below today's lows offers an objective entry with a very favorable R/R (minimal downside if stopped out).

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May 25, 2017 2:18pm|Categories: Gold & Commodities|Tags: , |3 Comments

3 Comments

  1. rsotc May 30, 2017 1:09 pm at 1:09 pm

    NIB rallying over 6% today following last week’s tag of the S2 support level…

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  2. ixtlanian May 30, 2017 9:31 pm at 9:31 pm

    @rsotc I doubled my (losing) position on May 25th after your post, so I am now in the green – thanks for that. Wondering if you are planning to make this an official trade.

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  3. rsotc May 31, 2017 10:06 am at 10:06 am

    Possible soon but the bounce (gap) off S2 was too big to for an objective entry yesterday & so far today NIB is following through to the upside. Looks good up to at least the 25.60is level as of now and if I see another objective entry, either on a pullback or quite possible on a breakout above 25.65ish, ideally after a consolidation below that level, I might add it as an official trade idea.

    With that being said, don’t hesitate to ask for updates anytime. As I’m also long & following it closely, I’ll probably be posting updates on NIB as well as some of the other ag commodities that look to be setting up as long trades.

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