September Soybean Meal has created an H&S. Market is now at the neckline and waiting to see if it breaks. Minimal drop would be to S2 at 364.3. Minimal shoulder height would put it at S3 at 353.5. Large sells for this formation came in at the 20 day MA at 378.1. There is also a support line coming in at 357 so this may be a launching area for an upward move. The other issue is an RSI support line that is almost reached. This tracks back several months. To make this H&S successful that line will have to be breached.
Comment:
Meal goes under neckline and is targeting S2 at 364.3
Comment:
Double bottom doji pause for Meal. Could see another fall Monday to S3. Needs to breach 357 first. If it doesn't, we might be at an end and another move up to at least neckline.
Comment:
Meal nearing S3 at 353.3 and hitting target for height of shoulder run. Meal may take a run at 333, but it will need to take a pause somewhere to do this. To be below 29 RSI is rare, but not impossible.
Comment:
Meal using S3 as support at 363.5. Might take a run at S2 and/or neckline at 367
Comment:
Long tail Doji might be locating a bottom. Will watch and wait