Rejected! Focus September Soybeans

September Soybeans

The September soybean contract opened in cross zone support at 966 before pressing higher to first level target resistance at 981. This area was discussed in yesterday's post and addressed in the morning audio report. Following USDA release the contract takes it hard on the chin. Prices knife through support cross zone and flush below the critical 954 save level on there way to extended downside support target level at 932. Market settles just off lows at 934. I'm up in the air when it comes to accurately categorizing the recent decline stemming from the highs of roughly 1038. I recently was in the non-impulsive camp leading me to assess it as non-sustainable. In order for this decline to fall into that category it'll have to hold up here at the .786 retracement. Next downside comes in around 921 but it's very spacey. In the event of a free fall market won't find support until +/-907. On the upside if the market were to find any support here it will rise to challenge the 948-952 level. A close above 954 targets +/-965. Studying an advancing move's structure will give insight into the markets next move.

John Lunney

Senior Technical Analyst

Walsh Trading

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