Soybeans
Now that July soybeans has reached the first support zone, as discussed in earlier posts. It is prudent to examine the smaller time frames to look for clues to the upcoming price action. There appears to be a potential forth wave triangle developing (subset wave). A failure to breach 919.2 would result in another wave lower to complete an intermediate 5 wave decline. This move ,if it were to play out, would test the 900.0 level. The lower end of the support zone. This development could spark another corrective rally. Upside target zone comes in at 927.0-931.0. A further investigation of wave structure would be on the look out for a non-impulsive rebound. If this develops a shorting opportunity would arise. Long term wave structure still points to further selling pressure. A hold below 900.0 extends to +/- 850.0.
Soybean Meal
Todays low of 297.9 touches the inner pitchfork line at the .786 retracement level. This should be respected. Not per say as to establish a long position but however an area to take some bets off the table. Also of note is the appearance of a potentially 5 wave structure to be in place along with RSI divergence in the hourly chart. If a rally were to ensue the first upside target zone would come in at +/-315. The structure of this event, if it were to play out, needs to be examined. Any non-impulsive correction would be viewed as counter trend and ultimately be confronted by a another wave of selling. If current low in place can’t hold up ( below 295.0) further weakness extends to +/- 270.0.
Soybean Oil
Second daily close below trend line at 31.66. If contract can’t claw its way back above 31.7 be on the lookout for further selling pressure targeting +/-29.50-29.00. Long term outlook remains the same. Extended downside projections in the dominant timeframes still point to an ultimate price objective at roughly 24.00-23.00. On a shorter time frame, if the market were able to gain any stability above 31.7 , a first wave advance would target 33.0.