• Oliver Sloup

Fade The Rally?

Corn (July)


Fundamentals: July corn futures rallied to start the new month of trade thanks to weather frost concerns in areas of the Midwest, coupled with hot and dry forecasts for areas further north. That momentum to attract follow-through buying in the overnight/early morning trade, thanks in part to a good crop progress report. The first crop ratings came in at 76% Good/Excellent, well above the average analyst estimate of 70%. Over the last 15 years, the first weekly condition ratings have been 71% or better, six times. Five of those six years finished with above trendline yields. Weather in the coming weeks will become increasingly important.


Technicals: The market broke out above first resistance on the floor open, yesterday. We had defined that as 673 ¼-676. In yesterday morning’s report we noted that this could “open the door for a retest of 687-691, the breakdown point which became resistance back on May 13th and 14th.”. Though we did not expect that to all happen in one sitting, that pocket was tested and held into the close. That breakout point will now act as first support/our pivot pocket..........Click this link to read the FULL report and receive our daily commentary


Bias:

Previous Session Bias:

Resistance:

Pivot:

Support:

Soybeans (July)


Fundamentals: Yesterday’s weekly crop progress report showed the U.S. soybean crop is 84% planted and 62% of that is emerged; well ahead of the 5-year average pace. Weather concerns following a long weekend had buyers excited early on, but that optimism started to fade when we got more participation on the floor open.


Technicals: The market tested and held significant support levels last week, which we had defined as the “1490’s”. This pocket represented previously important price points. We had noted in our reports and several interviews that we liked the risk reward setup to the buyside and would be looking for a retracement to the breakdown point from May 19th, 1574 ¾-1577. This pocket was achieved and defended in yesterday’s session. If you had been long the market, this is an area to consider reducing a portion of the position. If you are bearish, this is a spot to consider initiating a position. A break and close above resistance would neutralize our bias, as it could open the door for another leg higher, but the risk/reward setup is there for traders on both sides of the market..........Click this link to read the FULL report and receive our daily commentary


Bias:

Previous Session Bias:

Resistance:

Pivot:

Support:


Chicago Wheat (July)


Technicals: Wheat futures have finally gotten that relief rally, bringing us back to that psychologically and technically significant 700-708 ¾ pocket. As mentioned in yesterday’s report and Tech Talk, we like leaning on the sell side into this pocket. The risk/reward is defined, a break and close above resistance would neutralize our bias..........Click this link to read the FULL report and receive our daily commentary


Bias:

Previous Session Bias:

Resistance:

Pivot:

Support:



Call/Text/Email, Oliver with any questions.

Oliver@BlueLineFutures.com and 312-837-3938


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Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.

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