July Soybeans
Throughout the week I have interpreted the recent rebound as an non-impulsive corrective wave. Remaining opened minded is an essential quality to posses when engaging in analyzing wave structure. One must always be on the look out for alternative scenarios. The market is always right and has chopped higher through previously deemed resistance levels. I believe we are witnessing a complex structure unfold. If this recovery continues to press higher it will be confronted with first resistance level at 948.4-950.4. A violation and hold above this level could set base for a continued recovery targeting 988.0-995.0. I don’t necessarily subscribe to this scenario. If contract can reject first resistance level expect a slip to +/- 937 support channel. If this reaction possesses impulsive qualities retracements levels should be established with one looking to capitalize on the following wave decline. Downside projections come in at 900.0-895.0.
Soybean Meal
Not too much decisiveness present in today’s price action. A hold of 307.0 could sniff out 312.0, prior wave i low. A press above targets 314.0. Previously labeled wave count falls to the way side with a breach of 312.2. Follow thru extends +/- 318.5. Overhead target zone comes in at +/- 336.0-339.0. A hold beneath 307.0 should trigger further pressure. Next support level checks in at 302.0-301.0 with lower projections extending to 296.0-294.0.
Soybean Oil
Today’s action sees prices breach 31.80 level and extend to 32.34 cross resistance level. A hold above here would lead me to believe latest low was the termination of an leading diagonal first wave decline. This would set the stage for further upside potential targeting 35.00-36.00. A rejection from closing levels eases to test the 31.8 level. Holding below here sets stage for further declines. Downside target zone checks in at 29.50-29.00. Ultimately long term structure would suggest a new fifth extreme extending to +/- 23.00