Sep Wheat - Steady to 1 Higher
Dec Corn - 1 to 2 Higher
Nov Beans - Steady
Now, we know that September Wheat has been correcting the first big impulse up which ended on June 26th, this entire time. First was the A leg correction (previously thought to be the entire A-B-C), which sold off to 622.
Next was the rally up to 777 which was the B leg, and the current selloff is the C leg. Sometimes, corrections can last as long or longer in time than the impulse up, especially when the uptrend has just begun, as in September Wheat now.
This correction is called a flat or irregular flat. Irregular because the B leg up was higher than the 1 leg impulse, and flat because the low of A and C are similar in price. Next we are looking for the C leg (current down move) to find fund buying support at the level of the A leg bottom in the 622 area or with 5 to 8 cents.
You will see these details on the September Wheat chart.
Support for December Corn is between today's close at 494.75 and 478, the measuring gap target. Here is today's daily December Corn. Compare this chart to yesterday's weekly chart.
Here is an updated look at the running A-B-C correction in September Soybeans. The labeling is more clear on the 2 hour chart. You will see that the B (higher) leg is much higher than the previous buy impulse (1) and the C leg is much more shallow than the A leg by about 85 cents, again because the buying demand is too great.
Also, beans have not been able to print a new low below Monday's low of 1362. The A leg low is down at 1270.75. Again, we know that the last rally up to 1490 was part of this correction because the leg is only 219 cents long.
The first leg was 253 cents long and we know from the Elliot wave rules that the 2nd up leg can't be shorter than the 1st leg, during an impulsive wave. Also, the A and C legs are close in length. Therefore, the rally up to 1490 is not impulsive, but corrective - the B leg. Here's that look at the chart.
Here is a short article from top rated forex brokers .com:
Simple Running Corrections
There are two patterns that fall into this category, one of which we have already covered in previous articles: running triangles and running flats. Both of them are followed by an aggressive move in the direction of the previous trend. A running triangle is a simple correction, and the basic rule is that the e-wave ends beyond the start of the a-wave. It usually appears as the fourth wave in an impulsive wave, or the b-wave of a zigzag. A running flat pattern, on the other hand, is a more powerful pattern. First of all, it is a simple correction, and second, it needs to be confirmed by future price action. A running flat is characterized by a super-long b-wave that goes way beyond the 161.8% level when compared with the previous a-wave. One thing to consider here is that the bigger the b-wave is, the more similar the a and the c-waves are.
September Eurocurrency update:
The test of the breakout has temporarily failed, as price has traded below the breakout line for 6 days now. There is an uptrend line right below today's low and I am looking for the fund buyers to step up and defend this level.
This eurocurrency slump has probably added pressure to the grains the last 2 weeks. Take a look at the updated chart - the trendline is just below today's low - highlighted with a red arrow.
