Soybean Price - A Bullish Breakout

The chart for Soybean future looks rather bullish in the last few days. There is a clear breakout two days ago and at this moment it is trading at $1458 price level. It is bullish because the current up surge can be the sub-wave iii of wave 3.



It is possible for commodities to run during the initial phase of bear cycle for Dow .

In 2007, Dow might have reached its peak on 9 October 2007 and started its bear run but Soybean continued to run from $1010 in October 2007 to $1633 in July 2008 for a 61% gain. Will Soybean price move to $2200 in the next 6 months for a similar 61% gain?


Looking at the CRB chart below, from 9 October 2007, when Dow started to turn south, CRB put on 45% to reach 473 in July 2008. Is it possible for CRB to reach 536 for a similar 45% gain by January 2012?


Malaysian Crude Palm Oil (CPO) future usually moves in tandem with the Soybean future, can CPO price starts to run up from here?


Looking at the 1-year chart below, there is no sign of turning so far. However, the average monthly price for August 2011 of Rm 3121 is Rm 26 higher than the average July 2011 price of Rm 3095.



If CPO price can move higher to above Rm 4000, it is only logical that all the plantation stocks in Bursa Malaysia will move higher and I expect the big fish to take the opportunity to unload.


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