Early Week Price Action: September Soybean Complex

John Lunney General Commentary

September Soybeans

     Beans open lower in Sunday night session posting hard shadow low below 991 support target to 987.4. Prices stabilize and press higher to settle at 999.6 down six and half cents. Any rise from here will test trend-line come-back at +/-1005.2. A hold above rises to cross resistance zone of +/- 1022. This is the line in the sand to keep a lid on prices. A pullback or failure here could be signaling the development of a (b) wave triangle formation. In this event we’d be looking at more sideways action until a definitive move is made.However, a close above 1024 would point to an extended upward move targeting +/- 1065. A slip from current prices will find support at 993-996 sloping trend-line. A violation here won’t look good. Below today’s low will look to extend. Next target support comes in at +/- 976 with projected target zone coming in at 963-956.


September Meal

    Similar price action seen in the meal market today. Closing level rest right below cross zone resistance. Pressure here will weaken  prices to +/- 315. A likely follow through should extend to +/- 309. On the other hand, fortifying 324 will look to rise. Overhead resistance target zone comes in at +/-332. A close above sets up further gains targeting +/- 340.


September Oil

     A tight trading range unfolds in today’s session. I find it difficult to asses the current price structure. A hold below 34.70 should bring in selling pressure. Target support zone comes in at +/-34. If the market fails to hold it will be vulnerable to further declines which should extend to 33-32.50. In the event that the decline is non-impulsive in structure I’d be expecting a rise from these levels to be the beginning of a (c) wave advance which would ultimately extend above the recent high of +/- 35. A press up from closing price that is able to hold above 34.70 will look to challenge +/-36.30.