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New targets

The Beans continue to build a major base, but have been stopped by key retracements on the rallies and then failed to hold key levels below, these are the new levels to watch for to see if it can follow through this time. The base they have built is good enough to create a multi year advance.

The last setback on the nearby chart in Soybean futures held 38.2% of the current rally on 8/10/20 at 871.00, this is what you want to see happen when first starting a new trend and what you want to see to keep a longer trend intact. They are now above the 200 day average of 902.00 in the November contract and above the 905.00 major Gann square. You can now use 905.00 as the swing point. As long as they remain above it, look for the next major Gann square at 968.00. Based on the Fibonacci retracements, the next target is 61.8% of the 2016 high, this level is 1046.00. You will still have to watch 38.2% back to the same high at 945.00, they already reacted from this level two times, once on 10/14/19 and then again on 1/2/20, that high took them down to 78.6% of the move up. The failure to make a new low after hitting 38.2% up at 945.00 told us to look for 61.8% of the same move based on the ONE44 Fibonacci rules and guidelines. This is why we are looking for 1046.00 using the retracements. With a couple solid closes back below the 905.00 major Gann square look for 38.2% of the move to start, if this is all they can break the trend remains positive, failing to hold this level should send them to test the lows again.

Soybeans Daily