Soybeans - April 2016

 Due to time restrictions on our side our April roadmap for Soybeans is been published late, instead of the first days of the month. This is our April report for the soybean market. It includes a couple of cycle harmonics which added up to the current uptrend.

 Cycle analysis

 Figure 1 is a daily price-time chart for May soybean futures. It includes a harmonic of Gann's 20 years cycle that we presented in our previous post. We figured, based on our initial yearly analysis, that this harmonic could align with a market bottom, leading prices up as happened in October 2006. This figure also shows an harmonic of Gann's 14yrs cycle which aligned with a second acceleration bottom, from which prices started to rise with more strength.
 

Figure 1
Daily prices for May soybeans futures. Gann's 20yrs (red) and 14yrs (green) cycle harmonics turning in late March early April 2016. Both cycles seem to have aligned with acceleration bottoms, driving prices higher.

 Figure 2 is a daily price-time chart for May soybeans. It shows a comparison between the acceleration bottom of October 2006 (left) and the current market action (right). In both cases, Gann's 20yrs cycle harmonic seems to have aligned with an acceleration bottom.

Figure 2
Daily prices for May soybean futures. Gann's 20yrs cycle harmonic aligning with acceleration bottoms in October 2006 (left) and late March 2016 (right.)

 Summary

 We have presented two cycle harmonics that turned during April 2016 aligning with market acceleration bottoms. Gann's 20 years harmonic aligned with an important bottom in 2006 which drove prices much higher. During 2016 again, this harmonic aligned with an acceleration bottom.

 Next post: Update: Soybeans - April 2016

 Ricardo Da Costa

 Grain Market Analysis