July Soybeans
Follow thru weakness dominates the bean contract as prices continued slide violating lows established in late may. weekly and daily candle formations give no sign of hold. As touched on in recent postings extended near term support comes in at 894 to 888. This area is marked by channel lines and the .618 extension level.I currently have the high at 947.6 labeled as a iv wave extreme putting us currently in the midst of a v wave decline. Weekly ATR studies of 29 cents have been exceeded. I’d be looking for a near term low to be established at discussed support zone.
Soybean Meal
Similar action in the meal contract as prices peak below weekly mid-line support at 295.0. Near term support checks in at 291.o. Closing below 295 in the weekly candle is a negative. This opens the door for continued selling pressure extending all the way to 270-265.
Soybean Oil
A not as violent decline took place in the oil market. Late last week I had favored a non-impulsive rebound to develop but also clearly stated that a failure below 31.80 would alter my view. Last weeks bullish candle has been engulfed and shows no sign of immanent support. The only moderate support level appears in the shorter term time charts at 31.46 the .786 retracement level. It is difficult for me to label the decline commencing at roughly 38.00. This leave me grasping for precise extension levels. As it stands I see a violation of 30.85 giving way to follow thru targeting 30.0 to 29.5. Any rebound which is able to develop will be analyzed for structural clues.