Meal has bypassed the critical zone of 384.7 - 435.8 with a monthly retracement way overdue. We have also arrived at the point where we were able to see from past rallies that this zone of pricing always indicated a reversal/retracement. We should be able to see a July '08 kind or May '12 kind of movement that will take place, hence, critical zone. Unless, the parabolic movement extends all the way to newer highs. This showed some equality in strength of buyers and sellers at this phase which will heighten the volatility. Fundamentally, nothing has changed for commodities market in general, still bullish. Ending stock still way below normal level. The length of this rally will very much depend on the worldwide pandemic development. Both production and demand in the next few months will have to be taken into account in effect of this pandemic. A very high price will eventually curb the demand but there is still a lot of room for this to eventually happen. Expect an incoming retracement to enter the buy position.
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The bulls won't relent even with huge selling pressure. A huge retracement seems unlikely at this point. We entered a consolidation phase instead. Nevertheless, trends are still bullish. So were the indication from USDA reports. Global ending stock are at multi-year low
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Bears/Sellers have taken over and look to be heading fast towards the support zone of 380-390. A critical zone is soon to be entered. If it rebounds, my original trade idea is valid. Invalidation of it would be if this support area can't hold and breached way too many times. Take into account that this support area may be breached few times due to the strong selldown pressure