Soybean Meal soared 61% from late April 2020 into its mid-January 2021 peak. Since then, we have seen prices fall back to the 38% retracement of that rally. This 14% correction has touched the top of a potential major support zone. If you look at all volume traded between April 2020 and now you will find a large volume @ price cluster between 398.10 and 375.10. Inside this cluster is an even larger one between 390.90 and 381.20. This entire zone’s point of control (POC) is around 385.90. Further supporting this area are the 34 EMA wave (weekly chart), the 100% ABCD projection, and a Fib extension cluster. Long trades could be placed inside the 390.90-381.20 zone with stops below 375.10. A trade entered at the POC around 385.90 with a stop at 375.00 would be risking 1090.00 per contract. The largest upside obstacle would be between 417.60 and 424.70. This could be a first target area on any long trades. The recent January high at 471.40 would be the longer term target.
