Soybeans SHORT mean reversion to 865Nov Beans is back at the 38.2 Gann retrace from CTN High to Low, meeting resistance on the 2x1 Gann Lines (purple) from CTN all time High and 2nd CTN top. Move has been based on optimism from Chinese purchases of US Soybeans as a goodwill gesture to prep for October meetings. A move to the 1x1 Gann Line (dotted) is anticipated as we drift toward October seasonal lows before talks transpire. The 5yr 50 MA price channel via Spreadcharts shows Beans extended to the 5 year SD2 MA @9.00. Expecting a move toward the 1x1 lines (8.65) median line which is also the SD mean of the 5 yr MA of price given no new developments in Chinese US relations till October talks, and typical of mean reversion of price and seasonal trend.
Sold Vertial Call Spread Short Call 910 39d exp Long Call 920 39 day exp
Sold ZSX19 @ 8.99 Stop 913, TP 8.64
Gann fan scales
1) Michael Jenkins Initial Impulse 1x8 line aligned to high 2
2) 2x1 aligned to lowest low of new swings retracements (authors method)
