Soybean Elliott Wave Analysis
Soybean prices are declining after reaching a corrective peak at 1080. In the short term, the downside remains the favored direction, aligning with the broader bearish outlook.
Soybean Daily Chart Analysis
On the daily chart, soybean has been on a bearish trajectory since June 2022, following the completion of a bullish impulse wave cycle that began in May 2019. Based on Elliott Wave Theory, after a 5-wave sequence, a 3-wave corrective sequence should follow in the opposite direction. The ongoing decline from June 2022 is a correction of the prior bullish phase.
- The first leg, wave ((A)), ended in October 2023 after reaching a swing low at 1250.
- A corrective bounce in wave ((B)) followed, peaking at 1398.
- Since November 2023, wave ((C)) has been unfolding, and its wave (4) sub-wave seemingly concluded with a flat correction in February 2025.
With this setup, sellers may regain momentum in the coming days or weeks, pushing soybean prices lower for wave (5) of ((C)), which would complete the overall corrective sequence from June 2022.
Soybean H4 Chart Analysis
The H4 chart highlights the wave (4) sub-waves and the price reaction around the 1080 level, where the wave (4) correction is considered complete. However, there remains a risk of wave (4) extending further if price action challenges the 1080 resistance.
- As long as 1080 holds, the downside remains favored in the short term.
- A clear break below recent support levels could confirm wave (5) of ((C)) continuation.
Traders and investors should monitor price action closely for further confirmation of the bearish outlook.
Technical Analyst: Sanmi Adeagbo
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