On Friday July Soybeans fell back under the 1723-1720 support level (vacuum underneath) to build up more energy for an eventual move higher. The last 6 trading days beans have been coiling up like a snake - when it strikes it should be higher and there might be quite a bit of force behind it with 3 months+ of rangebound trade.
I wanted to talk more about the straight/clean moves vs. bumpy/stairstep moves in July beans but also on any chart. When there's straight on the left there is straight on the right (looking at the chart) - market behaves like there is a vacuum, when there is bumpy/stairstep left - bumpy/stairstep right. Support, resistance and trendlines are created by how the bumps/straights line up.
Please see if you can find the points looking left and right where bumps/stairstep intersect the horizontal lines and also where the clean/straight runs are. You should begin to see a pattern - You know those 3d holograms that you have to stare at a few minutes until the picture can be seen clearly? Kind of similar here.
Because Thursday up in July Beans had a fairly long straight move it created a vacuum below 1720. It looks like beans found some support in the 1700-1695 area where the previous day's breakout occurred. It is constructive that beans stayed above the blue uptrend line. Also the COT was bullish for beans this week. Remember the general concept is push/pull, and building energy/releasing it.
I am impressed with The July and Dec corn pattern the last 3 days. After that spike low (V bottom) Wednesday with the outstanding amount of contracts traded, and the last 2 days tightly rangebound (doji-like) it should begin moving up within a day or 2.
Technicians and traders call this 3 day pattern a spike and ledge.
July Crude update: There may be a good short (sell) Sunday/Monday in the 122 area for a move to 118-116. However, because the trend is still up this would be very short term and 130 is probably the next up target.