Soybeans - June 2017

 Our previous post discussed a harmonic of Gann's 14 years cycles bottoming on late May 2017. On May 31st, 2017 soybeans made a 2-day swing bottom and has started to rally.

 Both a cycle and PTV analysis indicate that this could be a bottom from which prices could rally until, probably, July 2017. A one month rally.

 Geometry analysis

 Figure 1 is a daily price-time chart for July soybean futures from 2016 to 2017. It shows several harmonics of Gann's cycles aligning with important market tops and bottom.

 

Figure 1
Daily prices for July soybean futures from 2016 to the present. Gann's 14 and 20 years cycles. PTVs with length related to the First Square of Twelve.

 Most importantly, Figure 1 contains several PTVs which lengths are related to the first Square of Twelve. The complete bull market from March to June 2016 was defined by two PTVs with length equal to √2x144 = 203.65.

  Later on, after the top was made, the last drop until the August bottom also measured √2x144. Two PTVs from different bottoms to the double tops of November 2016 and January 2017 were equal to the first Square of Twelve, 144.

 The last leg down until now, from January to late May 2017 (a 4.5 months bear market) was defined by a √2x144 PTV.

 Summary

 Both cycle and geometry analysis indicate the possibility that a rally may had begun. The market already made a 2-day swing bottom, which further confirms this hypothesis.

Next post: Soybeans - September 2017

Ricardo Da Costa

Grain Market Analysis