September Soybeans
Let’s consider the possible implications of an apparent daily hanging-man candle in the soybean market. A hanging man is a bearish pattern that forms at the end of an uptrend. It is created when there is a significant sell-off near the market open, but buyers are able to push market back up so that it closes at or near the opening price. Generally, the large sell-off is seen as an early indication that the buyers are losing control and demand for the asset is waning. A hold beneath 1032 ( today’s open ) will trigger selling pressure as everyone who bought on today’s open and close are caught long. I’d be expecting a press lower to test weekly gap level at 1009.2 with follow thru to support fan at +/- 1007. If market can’t hold look for a sustained move targeting 981-978. On the flip-side, a hold above 1040 rises to challenge +/- 1055 weekly comeback trend line, prior b wave high and projected weekly ATR measurement from Monday’s low.
September Soybean Meal
Market establishes a slightly higher weekly high before a sell-off recovers to form a hanging-man candle as seen in the soybeans. Holding below 341 triggers bearish set-up as discussed above. First support zone comes in at 336-333 inner trend-line and weekly gap level. Save level underneath at 331. If contract can’t stabilize prices threaten to unwind to +/- 320. Inversely, a violation of 343.2 reaches for 346-347. A close above targets +/- 355.
September Soybean Oil
Contract inches higher just missing projected resistance zone discussed in yesterday’s posting. Similar candle formation develops. A hold below 33.60 will bring in sellers. Look for weakness to extend to +/- 33.10. A crack here slips to test 32.80. A rise above 34.10 sniffs out 34.3 upper channel line. A hold or close above extends to +/- 35.00.