It is difficult for me at this time to make any solid conclusions as to the bean market’s next move. The apparent structure of the market since the high’s seen in the early summer of 2016 is an absolute mess showing no signs of conviction. I will proceed to break down the technical landscape dealing strictly with inflection points. As far as the upside is concerned the market will have to fortify the 972 level to gain any respect. If it is indeed able to do so then I’d be looking for a follow through to roughly 987 before any pressure is applied. If prices don’t back off they’ll most likely press up to /- 998. This area marks my intermediate channel high. On the other hand should prices slip below 971 I’d expect to see more weakness. First level support comes in at /-940. In my opinion this is where the contract will have to put up a fight to stave off a rug pull scenario which could see prices extend through the the 2017 June low of 922.2. My downside projection comes in around 900. This information my be useless to anyone clamoring for a decisive market call. With that being said It remains my opinion that there exists plenty of opportunity in many markets to establish favorable risk/reward positions. Please feel free to contact me at Walsh Trading to gain a first hand assessment of any product of you concern.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. Please join me next week for my 8th webinar where I will apply my theories to a multiple of markets.