May Soybeans
Earlier this year I posted bullish reports on the bean market. my first upside came in at +/-1070. The front month contract topped out last week at 1071 while the May peaked at 1082.4. Both contracts hit sloping channel projections and reached slightly above the pitchfork line. These convergence zones are the levels that I look for. When I address the structural nature of the recent retreat it appears to me to be non-impulsive. This leads me to believe that we are witnessing a 4th wave pullback of a larger 5 wave sequenced C . This all means to me that there needs to be a terminating 5th wave. My major support zone comes in between 1022 and 1019. Should this area hold I’d be expecting another advance to unfold. my upside target comes in at +/-1094. This is all contingent with the price (May) not violating the 1016 level of the 1st wave. Below here this scenario breaks down. In this event I’d be looking for a continued slopping breakdown to roughly 1005.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. Please feel free to contact me at Walsh Trading to discuss my insights into this or any market of your interest. Next week I have scheduled my 11th webinar. During this I will be applying my analytical approach to this and other future markets.