Heading to a new year low
Soybean Meal (Soymeal) is likely on its way down to retest the lows seen in 2008-2011.
We had earlier highlighted (see 25th June issue) there is a potentially big move to the upside following the breakout of its MT resistance trend line.
The rally surpassed our targets on the upside and hit a high of 357.70 recently.
We think that this rebound is now over and that the larger downtrend has resumed, which is in line with our long term bearish outlook for Soymeal.
The sharp fall yesterday suggests that Soymeal is on its third wave downwards that could drag prices to below the year low of 286.00, targeting 280.00 first.
Lower prices beckon here as we expect prices to retest the lows seen in 2008 (235.40) and 2011 (275.40) in the months to come.
Our ST and LT bearish view remains intact as long as prices stay below the recent swing high of 344.00. (Read Report)
Source : CIMB Research
Labels: Technical Analysis