Soybeans

Pattern Analysis: Soybeans have been trading lower since its Jan 18th high of 1092.50 on the July contract.  This recent downtrend has a dominant MM with deep retracement and 7:8 left-handed skewing.  The 1st level supporting MM has medium deep retracement with 1:7 left-handed skewing.  Together they create my Fade Zone (962.375 to 864.625).  Because both retracements are larger than 50%,  I consider this a weak downtrend that should produce a nice upside move if a low is established within it.  In addition, both have left-handed skewing which signals a lack of downside momentum.  Finally, there's a 2nd level supporting MM with supershallow retracement and 4:3 right-handed skewing.  This last piece provides a Fib extension of its own from 974.875 to 941.375.  It's this last MM that could help narrow down my overall Fade Zone.  Overlapping the two gives me the 1st area (960.50 to 941.00) that I will focus on for a possible bullish trade. 

Pattern Update: Yesterday's low was 941.25, which was at the very bottom of the 1st area I was monitoring for a possible bullish trade, just above the low from 8/2/16, and right at my 261/361 Fib combo.  Prices ended up closing up towards its open creating a long lower shadow.  These bullish supporting signals.  In addition, we have a possible double bottom forming.  We need a close above 960.25 to confirm it.  Stops would be placed ~ 948.00.  Target 1 is @ 973.50 with target 2 @ 978.00.  Supporting the double bottom, we have bullish divergence on the RSI and a bullish crossover on the MACD.  In addition to trading the double bottom pattern, you could go long at the 261 Fib combo turn bar @ 960.50.  Stops would be placed below the recent low @ 941.00.  Minimum upside objective would be @ 1016.75.  Upside obstacles include the 10, 20, 50, and 100 DMA's; the monthly pivot; and a volume @ price resistance zone.