Soybean futures ZS analysis

CBOT Soybean futures (ticker symbol ZS) give you an easy, liquid tool to seek to profit from or hedge against price movements for one of the world’s most widely grown crops.

Currently Soybean (CBOT: ZS) futures is in a downtrend with new weekly supply level around 890 in control, you can see Soybean weekly supply and demand technical analysis in the screenshot below.

Soybean price chart analysis

There are three imbalances on Soybean, price is bouncing between demand level around 812 and supply level at 890. However, there is a short bias, so it’s better to go short with the bigger picture downtrend instead of going long Soybean futures. The underlying price needs to rally in order to trigger short positions, we can see the weekly imbalance at #1 around 812 as the one needed for the price to rally to weekly imbalance #1 where shorts were possible.

Soybean futures ZS analysis
Soybean ZS futures analysis

Chicago Soybean futures recovered last Wednesday from their lowest in a few weeks, although prices remained under pressure on prospects of demand destruction caused by the coronavirus pandemic. Soymeal prices are still pretty high, given the fears of lower demand.

There is still room for Soybean futures to keep on dropping further.

Soybean Futures and commodities price action analysis

This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind. 

Soybean supply and demand imbalances

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements on Soybean ZS futures.

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand futures trading course.

There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.

3 Comments

  1. Panagiotis says:

    Hello,
    I am glad that you include commodities in your S/D analysis. I have two questions on this analysis.
    Q1) which futures month are your using in this analysis?
    Q2) How do you deal with the situation where for example, the nearest futures contract tests an important imbalance (eg monthly) but the next contract has not done so yet. And what if the nearest contract is about to expire, how would that affect your trading decision?

    Thank you in advance.

    • Hello, I am using the continuous current contract in front, ZS!1 ticker on tradingview.com
      I am not trading futures so I can’t reply to your question properly, I only trade stocks. I understand that you’d want to purchase a contract that has enough time to expire and enough liquidity.

      Sorry if I can’t help anymore, but like I said I don’t trade futures so I don’t know the specifics.

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