Soybeans CBoT: missed the short play opportunity and now waiting
Soybeans:
Price did not bounce on the lower line of the ascending price channel as we expected and broke through its support to the down side. Price tested same (now former) supportive line which has now become resistance (although we keep it drawn in green for now) during Thursday's session and traded impulsively lower during Friday's session. Price has completed its wave (3) up and is now performing a corrective wave (4) with probably a target of 1025/975 from where we favor price to bounce back up to initiate and complete its wave (5) with higher highs towards the end of the year. We have missed the opportunity to entertain a short play simply because of the initial stop-loss level at 1160 which would be some 7.5% above the current price and which would be too costly. If and when price would correct up to 1125/1140 during the coming week traders can still consider a short play with stop at 1160 (which would be an acceptable 2%). Other than that we will have to wait for the next opportunity which will be a long play at lower levels.
Price did not bounce on the lower line of the ascending price channel as we expected and broke through its support to the down side. Price tested same (now former) supportive line which has now become resistance (although we keep it drawn in green for now) during Thursday's session and traded impulsively lower during Friday's session. Price has completed its wave (3) up and is now performing a corrective wave (4) with probably a target of 1025/975 from where we favor price to bounce back up to initiate and complete its wave (5) with higher highs towards the end of the year. We have missed the opportunity to entertain a short play simply because of the initial stop-loss level at 1160 which would be some 7.5% above the current price and which would be too costly. If and when price would correct up to 1125/1140 during the coming week traders can still consider a short play with stop at 1160 (which would be an acceptable 2%). Other than that we will have to wait for the next opportunity which will be a long play at lower levels.