Today's candle started off with a bit of a threat. Look at that large top wick, about the size of half the full candle. That was big, green and mean, and lasted from about 10pm ET last night until 8:45am this morning. Fortunately though, it maxed out at the neckline, which is coincident with the 8ema. It rejected off of that level and started back down.
We made a new low for this swing and closed near it. The volume of today's and yesterday's candles are relatively large, in fact the largest on my chart for this contract. I believe today's candle represents a battle between the bears and the bulls because the we had a significant upswing followed by a more significant downswing about twice the distance. I think we can say the bears won yesterday and they won today.
Stochastics are quite low, which is concerning, and we're close to the AB/CD projection of the downswing from 3/5/2020, which could provide support and cause an upswing (see the purple downward angled lines).
However, the yellow double top projection and the large white downward angled AB/CD projection from the top of the second double top, show targets well below our 61.8% Fib extension target.
So, the decision at the 2:20pm ET end of the soybean futures trading day was easy. Hold through the weekend with the expectation of hitting our target sometime next week.
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