Elliott Wave Technical Analysis: Soybean Commodity For Tuesday, Sept 3
Image Source: Unsplash
Soybean Elliott Wave Analysis
The long-term bearish cycle for soybeans, which began in June 2022, continues to push prices lower, currently trading near a four-year low. The downtrend shows no signs of a major reversal, and investors are likely to continue selling on rallies until a definitive bottom is reached. Technically, no significant reversal signals have been identified, indicating that the bearish trend may persist.
Long-Term Perspective:
Before the June 2022 decline, soybeans completed a bullish impulse wave that started in May 2019, lifting prices from $806. However, over the past 26 months, more than two-thirds of those gains have been wiped out. From an Elliott Wave perspective, the current corrective phase is developing into a three-swing pattern, a common structure in corrective waves.
Daily Chart Analysis:
On the daily chart, the corrective pattern is analyzed from the primary wave degree (circled). Wave A (circled) concluded at $1,249 in October 2023, followed by Wave B (circled), which ended at $1,398 in November 2023. Wave C (circled) is currently unfolding to the downside. Within this wave, sub-waves (1) and (2) of 5 (circled) have already been completed, and the price is now advancing in Wave (3). The price has broken below the critical $1,000 level and could potentially drop to $800 before Wave (3) completes. This movement is part of Wave 5 of (3), suggesting that the bearish phase is not yet over. In the near term, further downward pressure is anticipated.
(Click on image to enlarge)
H4 Chart Analysis:
On the H4 chart, Wave 5 is in a temporary bounce for the 4th sub-wave, labeled as Wave iv (circled) of 5. This indicates that after this brief upward correction, soybeans are likely to resume their downward trajectory, continuing the sell-off. The broader bearish trend remains intact, with additional declines expected as the market completes its ongoing corrective phase.
(Click on image to enlarge)
More By This Author:
Unlocking ASX Trading Success: NWS Stock Analysis & Elliott Wave Technical Forecast - Tuesday, September 3
Costco Wholesale Corp. Stocks Elliott Wave Technical Analysis - Tuesday, September 3
AXIS Bank LTD – AXISBANK Stocks Elliott Wave Technical Analysis - Monday, September 2
Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817
Comments
![](/images/tinyMceCommentImg.png)