Corn
Technicals (December) Corn futures were able to chew through the upper end of our pivot pocket which propelled prices to our next resistance pocket 420-422 (Yesterday’s high was 422 1/4). The market then backed off into the pivot pocket which will now act as support. If the Bulls can defend this on a closing basis, we could see continued short covering push prices back to the breakdown point from the June 28th USDA report breakdown point, 430-434. A break and close back below out pivot pocket could turn things back to the bearish side for a potential retest of the low end of the range. If the market can achieve a third straight higher close today, it would be the first time in two months. Reminder: Friday is August options expiration; this could have an impact on price action. With these options trading off September futures, it’ll be interesting to see if $4.00 Sep. futures is a magnet.
- Bias: Bullish
- Resistance: 420-422, 430-434**
- Pivot: 413-416 1/2
- Support: 399-403**
Hourly chart of December corn futures on our article: Can the Relief Rally in Grain Markets Continue? - Blue Line Futures
Soybeans
Technicals (November) November soybeans tested the 20-day moving average and our 3-star resistance pocket in yesterday’s trade but failed to sustain momentum above there through the afternoon session. Today that pocket comes in from 1085 1/2-1087. This pocket represents trendline resistance from the May highs as well as the 20-day moving average, an indicator that we haven’t seen the market close above since May 28th. A close about a dime off the highs led to some initial selling in the overnight trade, taking prices 3/4 of a cent below yesterday’s low (likely on a stop hunt) but have rebounded back near unchanged. If the Bulls can get out above that resistance pocket, it could spur additional short covering towards the technically and psychologically significant $11.00 level. Our pivot pocket from 1061 1/2-1062 3/4 will be the line in the sand to keep an eye on through the remainder of the week. A break and close back below there could trigger additional technical selling.
- Bias: Bullish
- Resistance: 1085 1/2-1087, 1099-1101**
- Pivot: 1061 1/2-1062 3/4
- Support: 1046-1050*, 1025-1031 3/4
Daily chart of November soybean futures can be located here: Can the Relief Rally in Grain Markets Continue? - Blue Line Futures
Wheat
Technicals (September) Trendline support on the daily chart remains intact, in the chart below we zoom in on the hourly chart to give a clearer picture. The fact that trendline support is holding is a silver lining, the fact that we are also making lower highs is not. Also, not a great sign is the lack of a bounce when corn and beans were able to take on more meaningful gains in the prior two sessions. To spark a bigger relief rally, the Bulls need to get out above 553 1/2-556 1/4.
- Bias: Neutral/Bullish
- Resistance: 553 1/2-556 1/4, 579-583 1/4
- Pivot: 537-539
- Support: 525 1/4-530**
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
