Soybeans ZS - Lagging the Pack, but Ready to GoThis is a call I wanted to make yesterday, but didn't have time. With the time I had, there was a choice between this and a Nasdaq NS call and made the Nasdaq call:
Nasdaq NQ - 8 Days & 1,700 Points
But in fairness, I did pick up November options during yesterday's session, so at least I can say that much for myself, since this has some vibes of hindsight based on today's action.
Regardless, Soybeans gives strong cause to believe bullish action is imminent, based on the monthly candles:
What this tells us that our June high formed a double top with the '12 all-time high. But most critically, it formed a lower high double top, which means that MMs are likely to seek this level to crush bear skulls, and it's just a question of when.
The post-resistance top was really a long gap fill and we've also had three months of consolidation. As everyone who's traded with real money knows, picking the direction and the price is not the hardest, but instead, the timing is the very hardest, and most critical, thing.
And in terms of timing, the weekly gives us good cause to believe we're ready to go. We see that late July featured a gap up, which has been filled in and heavily consolidated over the course of five weeks:
And thusly, there is significantly reduced reason to believe that Soybeans are set to seek new lows instead of new highs.
And indeed, on the daily, what has manifested is a string of higher lows, culminating in this morning's gundown of the 1,400 level
A gundown that looks exceptionally turtle soup on the 1H, albeit retrospectively since it already ripped. But note that the rip occurred at 9:00 just before NYSE opens, significant because there are ETFs like SOYB that get caught gap up.
More importantly, maybe consider not trying to short the pop. Instead, going long on a pullback could be quite good.
And so, in magnifying the timeframe down to the 4H, I discovered that targeting boxes that appeared correct on the wider time frame were a little too shallow on the lower time frames. Thusly, I have generated a "revised" targeting box.
However, like I said, time is the harder consideration. I feel ZS will get there, but who knows when? In the meantime, a rundown of the 1,500 level, which corresponds with those August-July relative equal highs around ~1,485 is very realistic.
Everyone knows the global food supply is in trouble because of all the drought . Whether it's corn, wheat, soy, or whatever. And while you can certainly expect a new all time high to be made, it's really a question of when.
Months like December, January, and February when everything is both trapped in winter, a new calendar year, and people are struggling to pay incredibly high natural gas/electricity bills across the world resulting from problems governments have created since the Russian Federation's invasion of Ukraine this year, may be the more likely time target for 2,000 point Soybeans.
