MAY SOYBEANS--combined pit and electronic trading

May CBOT soybeans hit a new contract high early Wednesday, but then reversed to close at sharply lower levels. The action marked a bearish outside reversal day on the daily chart, which confirms the $14.96 zone as major near term resistance and possibly even a short-term top for the market. An outside day forms when the market exceeds the previous day's high and low. It becomes a bearish outside day when the market closes down.

Soybeans have rallied sharply over the past two sessions. The market has fallen back to the breakout point, around $14.60, the March 7 daily high. If sustained declines are seen under $14.60 it would be a weak chart signal and suggest the recent rally move was a "bull trap" and failed upside breakout.

A bearish turn has emerged on the 9-day relative strength index and momentum is now pointing down from previously overbought levels. The 9-day RSI fell to 62% Wednesday, from a high at 76% on April 1.

Hourly momentum, however, has hit oversold levels, which could allow the market to stabilize above or around $14.60. That zone can be used as a short-term toggle point, with declines under that area seen as a bearish signal, but gains above that zone interpreted as a positive signal.

Next support under $14.60 lies at $14.50 1/2. Minor resistance lies at $14.75 1/4.

$14.96--the contract high

$14.41 3/4--the 10-day moving average

$14.27 3/4--the 20-day moving average

$13.92 1/2--the 40-day moving average

$11.29--the contract low

MAY SOYBEAN MEAL--combined pit and electronic trading.

May CBOT soymeal also eked out a new contract high at $486, but then turned down and closed lower with a bearish outside day seen. The action is a negative formation and suggests the $486 ceiling is now important near term resistance and a possible short-term top. The primary trend is bullish, but momentum is turning down from overbought levels and a minor correction phase could unfold short-term.

On the downside, supports lie at $465.20 and then $461.00. Resistance lies at $480.00 and then $486.00. Beyond there, the $490 level stands as a psychological target, along with the $500 zone. A longer term bullish objective is seen at $510, the December 2013 high, seen on the weekly continuation chart. But, a period of consolidation and correction may be needed before the bulls regain the strength to test higher levels.

$486.00--the contract high

$469.40--the 10-day moving average

$458.90--the 20-day moving average

$449.30--the 40-day moving average

$303.00--the contract low

MAY SOYBEAN OIL--combined pit and electronic trading.

May CBOT soybean oil closed lower after a large range daily bar Wednesday. The action formed a type of "bearish shooting star" formation on the daily candlestick chart, which is a negative one-day signal. Major resistance now lies at 42.35 cents. The bears have the edge near term. The market is vulnerable to a retest of the 39.85 cents level, hit on March 31, near term.

The longer-term and major trend is bearish.

57.43--the contract high

40.82--the 10-day moving average

41.98--the 20-day moving average

41.29--the 40-day moving average

37.14--the contract low