I am not going to split hairs on a definition, but last week's weekly soybean bar makes a statement that prices are in a hurry to mark up prices. The bar in question is a strong, maybe key reversal up by selling off about 33 cents below the previous 2 week's bars, then reversing up above the previous week's high (engulfing) and also closing higher that the previous 2 week's closes.
An engulfing bar is a bar that is lower and higher than the previous week's entire range low to high. You will see this on the static weekly soybean chart. The open of each bar is the left hashmark on the bar and the close is the right hashmark. Focus on the last 3 bars to the right.
Also take a look at the last 4 bars. Do you see how the fourth bar from the right opens on the high at 1477, then goes straight down? After a small correction up, the next bar kept on selling straight down to 1305.
Remember the chart rule: straight on the left = straight on the right? This tells us that price will rally quickly (probably 2-3 weeks back up to 1475 to 1480, once beans confirms that the 1348 area is support. In a few weeks after that, July Soybean prices will probably rise back to the 1555 to 1584 level.
The daily and 4 hour chart both have a few bumps on the left. This indicates that within the 2 weekly bars there will be a few small corrections - small relative to the weekly chart.
If July Soybeans gaps higher tonight, we will be able to calculate a quick target higher for the first leg of this journey. Wednesday's low to Friday's high is about 84 cents.
Therefore, if a gap occurs, you will add 84 cents onto the low of Monday's bar to estimate a target higher for the first leg. There is a note on the right side of the soybean daily continuation chart with a possible scenario. However, Sunday night's opening is a wildcard. Take a look.
The distance from low to high on the July Corn inverted head & shoulders bottom is 59 cents. Therefore, you add 59 cents onto Friday's high to get a quick target of approximately 670.
Just as in the possible gap up scenario in beans, if corn gaps up, you will add 59 cents onto the low of Monday, which will yield a target that's higher than 670, because you have to account for the gap up.
After that, I expect a move (weeks) back up to the B leg high at price 707. Check out the daily continuation corn chart for reference.
Interestingly, July Wheat also has a quick target higher of 670 from it's bottoming formation. Will the price of corn surpass that of wheat? I have read before that when the corn price is close to or higher than the wheat price, more wheat is used in feed rations, depending on supplies.
The Nasdaq and S&P markets continue to show strength, with the Nasdaq leading all stock indexes higher. The June S&P futures finished the week with 2 consecutive big up days and has officially conquered the ascending triangle with a breakout to the upside. The triangle target is 4800 - months.
Looking more long term in the S&P, the swing measure target is 5700. This is 900 points above the all time January 2022 high of about 4800. This target is derived from the length of the last weekly leg up. Check out the daily S&P chart.
An interesting tidbit:
I watched part of the third round of the PGA golf tournament from Dublin Ohio yesterday - a northwest suburb of Columbus. The golf course was designed by Jack Nicklaus (famous pro golfer) in the mid 70's. He accompanied the broadcasters in the booth yesterday, making comments from time to time.
They were talking about the condition of the golf course - how far the tee shots were flying and how firm and fast the greens were because of the dryness. At one point Nicklaus stated this was the driest year of all time. The comment has some merit because of his relationship to the golf course and area - he was also born and raised in another Columbus suburb.
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