September Soybeans
Violent C wave price action unfolds in today’s bean market. Prices violate hourly trend-line support in overnight action unraveling through mid range support at +/- 977. Weakness continues as contract declines to the top end of extended downside target zone at 964-956 closing at 964.2. Below 960 market tests major area of support at 957-954. At today’s closing we have hit a double 1 x 1 wave projection and I expect market to put up a fight. If we hold here or come off lower support zone market will meet resistance around 977-979. We’ll have to close or hold above that area to gain any footing. Tomorrow’s action should be ripe with structural clues. In the event that 953 gives way it could get pretty dicey. I’m not favoring this scenario. However, in that event market won’t find support until +/- 932 at the .786 entrancement.
September Meal
The meal market was in step with the beans today and likewise rests at major support at the 1 x 1 projections zone. If the market can’t stabilize here it will be vulnerable to further declines targeting +/- 303. I find it difficult to be overly bearish at this point seeing that we have reached the previously targeted price projection zone. The market will still , however, have to prove itself. A hold over +/- 315 would be a good start. If so market will reach for second level resistance at +/- 319. Tomorrow’s action will be analyzed for structural clues as to the market’s next move.
Soybean Oil
Although not structurally similar to the other products, oil did flush to a major support zone which was targeted in yesterday’s post. A crack here will test save level at daily trend-line around 33.65. It should get pretty slippy below here with market not finding support until +/- 32.70. As with the other markets oil will have to earn any respect. A rise and hold above 34.25 would go a long way in doing that. If so contract will eye cross zone resistance at +/- 34.60.