Soybean (ZS_F) cycle from May 13, 2019 low shows an incomplete 5 swing sequence, favoring further upside to end 7 swing double zigzag structure. On the 4 hour chart below, we can see the rally to 945.4 ended wave (W) and pullback in wave (X) ended at 868.2. Wave (Y) higher is unfolding as a zigzag Elliott Wave structure where wave A of (Y) remains in progress. The internal subdivision of wave A is unfolding as an impulsive structure. Up from 868.2, wave ((i)) ended at 903.4 and pullback in wave ((ii)) ended at 888.2.
The instrument has resumed higher in wave ((iii)) towards 941.4 and pullback in wave ((iv)) ended at 927.2. Expect wave ((v)) of A to end soon. Afterwards, Soybean should correct the cycle from December 3, 2019 low within wave B before the rally resumes. We don’t like selling the proposed pullback and expect buyers to appear in the sequence of 3, 7, 11 swing for more upside as far as pivot at 868.2 low stays intact. Potential target higher is 100% – 123.6% Fibonacci extension from May 13, 2019 low which comes at 1021 – 1057 area.