Soybean prices rallied up to our downtrend line, that’s the upper end of our pennant formation and today the market looks as though it’s trying to break through to the upside.

If prices push through this pennant formation, we mentioned last week that prices were stuck in the middle of a pennant formation, and if we go above that that would make 7.13 and 7.41 the next target for the soybean market.

Technical indicators are now starting to enter the overbought range but no sign of topping action yet.