July Soybeans
Shaven bottom daily candle ( opening sets the low) develops in today’s action. Prices rise thru inner channel line and press higher to 918 before retreating to finish at 911.2 forming what appears to an a-b-c non-impulsive pattern. If today’s high marks the end of a wave then the commencing pullback would need to be labeled an x or a b wave for the recovery to continue. Underlying support comes in early at roughly 907.2 cross zone. A violation sniffs out 904 which sets the last line of defense. A rise off cross zone support looks to advance targeting 921-924. A close above 921 sets stage for further gains targeting +/- 938. If 904 can’t hold contract looks to take out recent lows, declining in v wave fashion.. Downside channel extension comes in at +/- 891.
Soybean Meal
Another tight range develops in the meal contract as market struggles to gain any conviction. A hold beneath 295.2 leans on contract. below 293 violates recent lows following thru to 290-286. Holding 293 chops higher to +/- 298. A close above 300 sets stage for further gains extending to +/- 316. As touched upon at the end of last week the markets inability to close above 295 leaves the door open for an unraveling extending to 270-265.
Soybean Oil
Opening sets day’s low in the oil market ( shaven bottom ) and prices press higher to overhead resistance level 32.00 pushing above to 32.24. Market closes just off extreme at 32.08 right on inner channel line. Holding above 32.00 sees prices continue higher targeting 32.80-33.20. A slip below 31.43 looks to take out recent lows. Downside target comes in at +/- 30.00.