Soybean Top

ONE44 Analytics where the analysis is concise and to the point

Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements and Gann squares.

SOYBEANS

Is this a top?

First off I will say that we have been calling for a multi year rally from the fall of last year and this will continue as long as any setback stays above our long term swing point.

Our previous long term target was 1410.00 to 1436.00, this was 61.8% back to the ATH and a major Gann square. They spent four and a half months trading sideways after first hitting it in mid January. The biggest break from this area got down to the 1300.00 major Gann square and just above 23.6% (1285.00) of the move up, keeping the market extremely strong. It had only one minor close above it on 3/8/21 and then more sideways action followed. Our next long term target once it could clear 1436.00 was 1588.50.

The 1588.50 target has been achieved on 4/28/21.

The current top is 78.6% back to the ATH and a major Gann square. They did trade above it, however as of yet it has not closed above there. On any break from this area, a good target to look for will be the new long term swing point, that is now 1300.00, this is 38.2% back to the low of the move and a major Gann square. The level to watch for, that would keep the market extremely strong is 23.6% of the current rally, just as they held above 23.6% of the setback from the 1436.00 major Gann square, this level is 1418.00.

Provided there is no turn lower from this area and they get a solid close above 1588.50, the next long term target will be 1970.00 and 1588.50 will become the short term swing point. There are other major Gann squares marked on the chart to look for resistance before then at, 1666.75, 1746.75, 1830.25 and 1915.50. You can also use the ones below for support, these are all marked with yellow horizontal lines.

You can find all the rules and guidelines for the Fibonacci retracements used in this post on our website.

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