July Soybeans
As touched upon in yesterdays post I have observed reappearing wave structure characteristics in the agricultural products as it concerns to the layout of correctives patterns. In todays action I believe we have witnessed the extreme of a second wave in a five wave pattern at 940.0 If this is correct it should be followed by an impulsive wave (3) to the downside. First line support zone rest at +/- 920.0 with extended downside projection coming in at 900-895.0. A breach of 940.0 negates this outlook. Any rally which can fortify 950.0 looks to challenge 990.0.
July Meal
Similar setup unfolding in the July meal contract with the high of wave ii labeled at 308.2. This should be followed by an impulsive wave iii of a five wave pattern in the direction of the major trend (down). Downside extended target zone between 295.0-292. If this were to unfold I’d be on the look out for another corrective wave rebound. We will postpone any discussion of this until wave structure makes itself known. A rise above 308.2 negates this setup. Id expect a follow thru to challenge the 317.0 level.
July Bean Oil
The market continues to hold above previously identified 31.80 support line (upward slopping). This had led me to believe that the (matching) low seen at 30.87 was the termination of a leading diagonal first wave of a larger fourth decline. I am not at all married to this opinion and could quickly be swayed if prices were to hold beneath 31.8. As it stands, I’d be expecting the current corrective rebound to press higher. Next overhead resistance comes in at +/- 33.30. Extended upside target checks in at +/-35.40. As mentioned a hold beneath 31.80 could set up an unraveling extending to 29.5-29.00.