Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of Soybeans Futures ( $ZS_F ) , published in members area of the website. As our members know, the commodity is showing impulsive bullish sequences in the cycle from the 808’5 low. We’ve been calling rally in the commodity , recommending members to avoid selling in any proposed pull back and keep buying the dips in 3,7,11 swings. Recently $ZS_F made pull back that has unfolded as Elliott Wave Zig Zag pattern . In the further text we are going to explain the Elliott Wave Pattern and Forecast
Before we take a look at the real market example, let’s explain Elliott Wave Zigzag.
Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.
Soybeans Futures ( $ZS_F ) Elliott Wave 4 Hour Chart 3.29.2021
Soybeans Futures remains bullish and buy in a dips . Current (4) blue pull back is unfolding as Elliott Wave Zig Zag pattern with inner labeling: ABC red. We can see that wave A red shows impulsive 5 waves structures . Consequently we expect C red leg also to have 5 waves which is characteristic of Zig Zag Patterns. Pull back looks incomplete at the moment. We expect more downside toward 1366’6-1324’5 equal legs zone ( Blue Box). We favor the long side from the mentioned zone. As the main trend is bullish we expect buyers to appear for 3 waves bounce at least. As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
You can learn more about Elliott Wave Zig Zag Patterns at our Free Elliott Wave Educational Web Page .
Soybeans Futures ( $ZS_F ) Elliott Wave 4 Hour Chart 4.4.2021
Eventually the commodity made extension down toward blue box area 1366’6-1324’5 and found buyers as we expected. Pull back ended slightly below the 100% extension at 1364’4 low . We got nice reaction from the blue box, which exceeded above B red peak, so member who opened long positions are risk free . We would like to see further extension higher and break above (3) blue peak (03/08) to confirm next leg up is in progress. Alternatively if 1364’4 pivot gives up double in (4) will be seen.
Keep in mind that market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room . You can check most recent charts in the membership area of the site.
Elliott Wave Forecast