Soybeans, Corn & Wheat Validating 2018 Cycle Lows; Reinforce Outlook for 2018 – 2021.
01/04/19 INSIIDE Track: “Soybeans, Corn & Wheat continue to show signs of bottoming – on a 3 – 6 month and possibly 6 – 12 month basis, with Soybeans in the best position to accelerate higher in 1Q 2019. Based on their weekly trend pattern, Soybeans should surge to new 6-month highs in the coming weeks.
All of these grains are still validating what has been expected to be major lows in 3Q 2018 followed by a multi-quarter advance. Corn fulfilled projections for a spike to new lows in Sept. 2018 – perpetuating a ~360-degree/~1-year low-low-low-(low) and a ~720-degree/~2-year high (Aug. ’12) – low (Sept. ’14) – low (Aug./Sept. ’16) – (low) Cycle Progression.
Corn appears to have created a secondary low (and another intermediate low above that) as it trades within its flattening weekly 21 Low MAC after perpetuating a 10-week low-low-(low) Cycle Progression. That could spur a rally into February.
With the inversely-correlated weekly 21 MARC dropping sharply for the next 5 weeks, now is the prime opportunity for Corn to turn its weekly 21 MAC up and surge above that. A weekly close above 390.0/CH would confirm new strength.
Wheat is trying to rally after holding pivotal support at 500 – 505.0/WH for the past six months. Wheat would not turn its 3 – 6 month trend (which has been neutral) down until a weekly close below 500.0/WH. It has a precise 13-month high-high-high-(high) Cycle Progression that projects its next 3 – 6 month (or longer) peak for late-Aug./early-Sept. 2019.
In the meantime, Wheat could/should be setting a low now (early-Jan.) after completing successive declines of 5 months each. If a low is set now, successive 8-month advances (Dec. – Aug. ’17 & Jan. – Sept. ’19) would reinforce the 13-month high-high cycle (and create a textbook web of Fibonacci moves and Golden-Ratio relationships for those Fibonacci aficionados) and portend a Sept. ‘19 peak.
3 – 6 month traders and investors can enter long positions in May Wheat futures and risk/exit on a weekly close below 505.0/WK.”
Grains are fulfilling analysis for major lows in 3Q 2018 – the convergence of multi-year cycles including 1, 2 & 4-Year Cycles in Corn. Could this be the first phase of Food Crisis Cycles forecast for 2019 – 2020? Could this coincide with the peaking of Drought Cycles in 2021? (See discussions in 2015 – 2017 regarding the culmination of Drought and Agricultural Cycles in 2016 – 2021, projected to give way to dramatic changes in 2022 – 2024… and beyond.)
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.