#$soyb

After sprouting past key resistance earlier in the month, grain prices are testing their breakout levels -- is this the buying opportunity bulls have been waiting for?

Grain prices have been in a drought (figuratively speaking) for the better part of a decade. In early July, we noted a seemingly key breakout in the beleaguered complex. Specifically, the S&P GSCI Grain Index had broken out above its post-2014 Down trendline, potentially opening up more considerable upside for the index, finally. That said, as we noted in a Premium Post at The Lyons Share, “on a short-term basis, it has probably gotten a little ahead of itself and we’d wait for a bit of a pullback before pulling the trigger.” Now may be time for investors to pull that trigger.

That is because, following a pullback over the past few weeks, the Grain Index is back testing the top side of that broken trendline.

On the theory that former resistance *should* become support, this may be a nice entry point for grain bulls, from a risk/reward standpoint. Yes, this is mere isolated data point in a market with a complicated set of price influences. However, as we noted in that Premium Post, there may be other factors going for grains here as well.

In a new Premium Post at The Lyons Share, we review those other factors, revisit our favorite of the individual grain markets and lay out how to play this potential opportunity.

If you want the “all-access” version of our charts and research, we invite you to check out our new site, The Lyons Share.

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In the midst of a decade-long “drought”, grain prices may finally be perking up..

During the commodities boom 10 years ago, among the darlings among speculators were the grains. However, like any market that becomes the object of such investor exuberance, grain prices soon withered. They have spent the better part of the decade since in a steady decline. There have been a number fits and starts along the way, though. And while each of the prior price spikes has been a head fake, another attempt is underway at the moment.

Obviously there is much work to do in order to reverse the longer-term trend, however, the S&P GSCI Grains Index is seemingly breaking an important line of near-term resistance in the form of the post-2014 Down trendline (on a logarithmic scale).

So will this trend break finally lead to a long-awaited, more durable bounce in grains? Or is it destined to be just another fakeout? In a premium post at The Lyons Share, we address that issue. Additionally, and importantly, we take a look at each of the major grains separately to see if any of them stands out as having a more favorable setup than the others (one does).

If you want the “all-access” version of our charts and research, we invite you to check out our new site, The Lyons Share.

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