July Soybeans
Soybeans pressed higher thru projection and resistance zones mentioned in yesterdays post. Because of the sloping quality and time factor effecting these levels one must be careful of attempting to pinpoint exact trade location and also be willing to minimize risk. Trading is like fishing in a sense. The minor drawdowns you incur are comparable to the bait you lose when trying to land a fish. It is an unavoidable expense. Presently , as it has been, my interpretation of the structure still puts me in the bearish camp. Its difficult to label this rebound as an impulsive move. Although it has risen to unforeseen levels. Todays high once again hit channel resistance, falling just shy of the 50% retracement level. The upper extreme of a iv wave correction. Nothing about the structure has altered my view. However, one must remain flexible and open minded. As new information becomes available alternative scenarios must be considered. As touch upon yesterday, a 5 wave decline should be present at the initiating point of the wave. Confirmation is required at the expense of precise location. It appears to me that this structure requirement has taken place. Monitoring any retracement from the high established at 940.4 is called for. A normal projection would call for a 50% to 61% reaction. This puts the target execution level around 941.0. Confirming indicators should be in place. If these events take place then that would lead me to be in strong favor of upcoming new lows being established. target zone comes in at 900.0 to 895.0.