End of Week Wave Analysis: Soybean Complex

John LunneyGeneral Commentary

September Soybeans

     Last day of the holiday week saw beans opening steady before pressing higher to first target price at 1003. Contract refuses to back off and rallies into the close to finish at 1006.2 just off highs posted at 1008.6. Sizable week range of over 50 cents expands average ATR readings of 29 and finishes in belt-hold candle fashion (opening on low and closing at high). This is a bullish formation. Market finishes week just shy of next overhead resistance at 1012. A rise from her will challenge this level. It does appear that we are in the late stages of a third wave of a larger five wave structure stemming from the lows just below 905. I’d expect this level to put up a fight. If in fact contract gets turned back here, falling into a fourth wave correction, it will find support around 980. A close above 1014 sets sights on +/- 1031.

 

Soybean Meal

     Mimicking action in the meal market today. Contract rises into previously labeled resistance zone of 330-333 to close just off 333.1 high at 332.7. Immediate overhead resistance in place at +/- 336. A close above hear shoots for 345. If prices are rejected at 336 contract will look to give back some of its recent gains. Support comes in at 323-321. Flush level underneath at +/- 319.

 

Soybean Oil

     Real tight range develops in the oil market. Daily candle posts a symmetrical doji formation representing a non-committed trading crowd. A potential falling three pattern appears in the daily candle structure. A rise and hold above 33.30 triggers bullish implications. Overhead projection  convergence zone comes in at +/- 34.2. This marks the channel line and the Fibonacci wave extension levels from the potential  x wave low at just under 32.20. A slip under today’s low falls to +/- 32.5. Big level here which should hold its ground. A hold beneath 32.47 cracks to +/- 32.15.