July Soybeans
In Monday’s session prices managed to rise above weekly candle body high of 942.2 posting a shadow (wick) extreme to 947.4 inner resistance line touched upon in last posting. As suggested, level turns back advance as prices retreat to finish roughly unchanged for the day. For those of you who have followed along with any of my posting, I have generally employed Elliot Wave Theory to gain my insights into the markets. I find the current short term structure non-confirming as it relates to my longer term bearish outlook and thus have focused on other technical tools to asses support and resistance levels. Holding below 939.0 will give the weekly hanging man candle a chance to materialize which would unfold by producing lower prices. First downside support comes in at 921-917. Any unraveling would target lower 890’s. On the upside, any fortification of 942.4 would likely extend thru 946.0 sloping inner channel line. A press above sets up further gains targeting +/- 960.
July Soybean Meal
Pretty non-conclusive price action taking place. It remains my opinion that longer term structure still suggest weaker prices. In the short term I once again find the clues to be non- confirming. If the contract were to come under pressure it will find support between 294-292. A sustained hold below 295 sets up a possible unraveling which could extend to +/- 265. On the upside, a press higher finds resistance at 306-307. A fortification of this zone extends to roughly 315.0.
Soybean Oil
Nothing really to see here in early week action. Short term wave structure looks to be setting the chance up a minor pullback. Most likely a b wave move. Look for support to come in around 32.40. A violation weakens to test +/- 31.85. Any hold below this level changes my current outlook which is looking for a choppy rally to work its way to around 35.50.