January soybean futures have been trading around support in the 850 area. Sunday night they attempted a downside breakout below that level; the rejection of the downside move proved to be a Taylor Trading Technique Buy day.
If you’ve been following Swing trader’s Insight for some time you know that we can often treat the night trading as a distinct trading session from the following day’s trade (8:30 AM to 1:15 PM CT), especially on a Sunday night / Monday session. For the Taylor Trading Technique this means a Sunday night selloff often becomes a Taylor Trading Buy day for the day session (or vice versa).
Soybeans pressed lower last night, breaking below the 850 level- the Argentinian election and the prospect of increased supply out of Argentina was given as the reason. The press below 850 appeared to be a downside breakout; how the market traded in relation to that level would determine what would do for the day session.
January soybeans made a session low of 844-2 at the end of the night session. The day session made an early push to the overnight low but it couldn’t push below there. A rally ensued, trading above 850-0 at 9:20 AM and then again around 9:50. These rallies could be used as a long entry trigger for aggressive traders (an alternate Taylor Trading Buy day reference price).
At 10:35 it traded above 852-0; the standard reference price for a Taylor Trading Buy day. As we anticipate for a Buy day, the rally above the reference price solidified the daily up trend and the market rallied, making a series of higher highs and higher lows into the close.
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