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Soybeans key support


The current break is coming off of 38.2% (945.00) to the 6/10/2016 high, this is the second move away from this level and it is the long term swing point. The break from there should send it to new lows based on the 38.2% rule, but as always you have to watch all the retracements back down to see just how weak, or strong the market is. Right now they are just above 38.2% (885.00) of the rally from the 5/13/2019 low and to add more importance to this area the 200 day average is at 890.00. You can get long in this area and the risk is a solid close below 885.00, it can trade below it, but you want the close back above. Provided this area does hold and because they have already reacted from 38.2% (945.00) two times, the upside target will be 61.8% of the same move at 1045.00. Failing to hold 885.00 brings back the 38.2% rule target of new lows from the 945.00 level.

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