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Soybeans: A Reason for Excitement
After every choppy move comes a price spike.
There hasn’t been much reason to get excited about soybeans futures lately. The commodity has been defined by short, choppy up-and-down moves for some time, showing no real signs of a trend.
So why then is our Daily Futures Junctures editor Jeffrey Kennedy excited about the potential moves ahead in Soybeans?
5 days a week, EWI's Daily Futures Junctures brings you one or more "best opportunity" in commodities' futures markets. Today's "best" is Soybeans (May 20). What will be tomorrow's opportunity? Subscribe risk-free to find out.
Well, turns out that those short, choppy, overlapping price moves could mean something very important to the future of soybeans – especially from an Elliott wave perspective. As Jeffrey explains in tonight’s (May 20) Daily Futures Junctures,
"The inability of Soybeans, Soybean Meal and Soybean Oil to rally, or selloff, argues that Contracting Triangle is in force."
A Contracting Triangle is one of 13 Elliott wave patterns. What makes it so intriguing is that it can only occur in waves four, B or X. All those are corrective patterns. Which means that once a Contracting Triangle is complete, you can expect a breakout and a resumption of the trend.
In other words, Soybeans isn’t going to stay in this choppy wave structure forever. The question is, when will it turn – and just how far might it move when it does?
Jeffrey Kennedy gives you answers to both of these questions in tonight’s DFJ. He also shows his readers an exact price point in Soybeans – which, if violated, would prove his analysis wrong.
The alternative? Try and time the next move in Soybeans based on their current "fundamentals": "Soybeans fell the most in two weeks on speculation that Argentine farmers will halt their nationwide strike to clear the way for talks with the government aimed at repealing increased agricultural taxes." (Bloomberg)