Prices could start to work its way lower from here following the breakdown from its bearish flag pattern.
The rebound since the 857.00 low to 923.50 has been ragged and was stuck within parallel lines, suggesting that the move was merely a rebound.
Based on our counts, we expect prices to fall to below 857.00 and test 805.00 next, where wave v is equal in length as wave i.
Since wave iii did not extend, there is a good chance that wave v could be extended.
If that is the case then wave v could potentially fall to 1.618x the length of wave i to 731.75.
On a more bearish scenario, the rebound from 857.00 could have been just a smaller degree 2nd wave. And if that is the case, then there could be a lot more downside from here and it could continue on to below 731.75.
We remained bearish on Soybeans as long as 923.50 holds. 916.00 is a minor resistance in the near term. (Read Report)