Early Week Technicals and Wave Structure: Soybean Complex

John LunneyGeneral Commentary

September Soybeans 

     No slowing down this market as beans gap up from Friday’s closing levels to 1015 posting a shaven bottom low ( low at open ). Prices press higher during session extending thru .786 retracement level to 1034.4 then easing slightly to finish at 1030. If contract continues rising from here it will most likely target 1046 with overhead surge level extending to +/- 1055 at .50 Fib number and inner trend line convergence zone. Any easing of market will find support at 1007. A hold beneath follows thru to +/- 995 with underneath trend line comeback resting at 977.

 

September Bean Meal

     Similar action unfolds in the meal market today. Shaven bottom low at 334.3 established before contract continues higher to 342.6 extreme easing to settle at upper range at 340.2. On thing of note is that the high today represents the .382 retracement level from the extreme established in June of last year along with inner trend line resistance coming in slightly higher at 346. A close above 348 looks to challenge 360-362 target zone. A failure to advance over 346 sets up pullback. First underneath support comes in at inner trend line comeback level at  336 with a violation slipping to  333.331.5. A close below 336 will look vulnerable to further declines. Extended downside target rests at +/- 315.

 

September Bean Oil

     As touched upon in Friday’s posting the market set off a bullish signal by rising above 33.30 in early trading. Prices press higher to close just of high mark of 33.65 at 33.62. Overhead target zone comes in at 34.13-34.23.A close above sets up further gains targeting +/- 35. A failure at first resistance level will look to ease. I’d be expecting a b wave choppy decline to weaken to roughly 33.20. Depending on structural evidence a c wave advance could commence from this setup.