July Soybeans
The July Soybeans jumped up in early morning trading activity topping out at 1064 before getting rudely turned back after the opening bell. Prices quickly turned negative as the contract knifed through channel support following through to post a session low at 1050.4. The market finished the session just off the extreme at 1052.6. The day’s low does come in at the throwback support level while displaying momentum divergence. Any attempted rebound will run into near term overhead resistance at +/- 1057.4 . A hold above 1058.4 will take some pressure off. I’d expect any rally will get turned back. It is my opinion that the contract is retreating from the most recent high of 1078.6 in an a-b-c fashion. This pattern does not appear complete to me. I’m looking for continued selling pressure to flush this market to +/-1040. This area represents a major cross zone support level along with the approximate 1 x 1 target projection. From here I’m expecting the beans to once again perform their jumping routine. However this time I’m not expecting any major backlash. Furthermore, I contend that the market will be ripe to poise an extended C wave advance to roughly 1100 to complete the A-B-C sequence which commenced at the hard X wave low of 995 posted on the 4th of this month. A daily close above 1057 would be a solid clue. Please follow along with me as I attempt to stay one step ahead of this and other futures markets. Please feel free to to give me a ring at Walsh Trading to discuss my proposed strategies to take advantage of this scenario playing out.
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