Mid-week Technical Observations: Soybean Complex

John LunneyGeneral Commentary

September Soybeans

     Prices get a touch slippy after they fail to hold above 1031.6, yesterday’s hanging-man candle’s body low. This scenario was covered in Tuesday’s posting. Contract trades lower to 1015.4 before recovering to settle at 1025.2. A continued hold below 1031.6 opens the door for some liquidating pressure. A violation of today’s lows will break speed support line. A likely follow through should unfold with downside support coming in at 979-977. It must be noted that the market has held above weekly gap level of 1009.4 for three days. A rise above 1031.6 looks to extend gains. Upside target rests at +/- 1055.

 

September Soybean Meal 

     Similar price action seen in the meal market. Contract slips below inner trend-line at 336 and follows through to 333.6 at speed support line before recovering to finish at 338.0. Like soybeans the market held above weekly gap level. A fortification of 341 looks to advance. First upside target comes in at 346.5. A close above looks to extends. Overhead objective checks in at +/- 356. On the flip side, hanging-man structure is  a hold below 334 opens door for further pressure. Downside support comes in at 324-322.

 

September Soybean Oil

    A tight range develops ins the oil contract below Tuesday’s hanging-man body low. Further weakness slips to +/- 33.20. A violation here extends to +/- 32.70. This has potential to mark a  b wave low of the second intermediate set of a complex W-X-Y corrective rally. In this event I’d be looking a a c wave wave rally to develop which would rise above recent established highs. If market is to stave off a retreat from current levels it will have to establish value above 33.90. If so I’d expecting a press higher to roughly 34.40. Overhead extreme comes in at +/- 34.90.