Looking at the chart of soybean meal it is looking to breakout of an intermediate term wedge that targets the old highs at 541 if it breaks out decisively. The action I’ve seen as of late says price wants to head higher, it’s just a matter of whether it will this time or if it needs another test of support below in the low 410′s.
On the weekly chart you see price basing above support and forming higher lows against a trend line since July of 2013 and it is now testing resistance above. Above 455 it could run, but it has struggled with that area multiple times. It remains above its moving averages on a weekly basis with the 21 week providing support at 424. RSI continues to remain bullish above 50 in a tight range and has room to run with a break above 60.
The daily chart shows more detailed action as it filled the gap in late August and has been forming a relatively tight range ever since. A break above 455 will warrant a test of 470 a prior reaction high. Above that new highs are imminent. RSI has based nicely and has room to run as well. Volume has been relatively good at confirming price action, but I’d like to see a large increase in volume if we break and close above 455.
Overall I’d say price action supports higher prices, but we need a close above 455 on high volume. In the short term 438 is a high level stop with the trend line in the 410′s being the major support level between price and the longer term wedge support at 360.