Soybean Elliott Wave Analysis

Soybean prices continue their sideways recovery from August 2024. While they have gained about 5%, the dominating path since June 2022 remains to the downside, and prices might just turn lower again soon.

The daily chart analysis

After completing a 5-wave advance between May 2019 and June 2022 when the price improved from barely $790 to $1787, the commodity has been on the opposite side since then. Based on the Elliott wave theory, a 3-wave correction follows a 5-wave trend. The 3-wave bearish correction started in June 2022 is labeled in the primary degree. Wave ((A)) ended in October 2024 with a diagonal structure at 1250 while wave ((B)) finished with a zigzag structure at 1398. As the daily chart shows, wave ((C)) is ongoing. The current bounce from August 2024 should be wave (4) of ((C)). After wave (4), the commodity should return lower in (5) to finish ((C)) and then a long-term recovery could begin.

(Click on image to enlarge)

The H4 Chart Analysis

On the H4 chart, wave (4) is evolving as a flat structure—a 3-3-5 corrective sequence that’s often sideways in appearance. Wave C of (4) is on course to finish a 5-wave structure - most likely an impulse wave. Price is still in ((iii)) of C of (4) which means the upside is still favored in the short term. However. The upside may correction may not last too long before the 2.5-year sell-off resumes.

(Click on image to enlarge)

More By This Author:

Elliott Wave Technical Analysis: AAVE Crypto Price News For Tuesday, Jan 14
Microsoft Inc. Stocks Elliott Wave Technical Analysis - Monday, January 13
Adani Ports And Sez Indian Stocks Elliott Wave Technical Analysis - Monday, January 13