Fundamentals: Corn futures are lower again this morning, for the third straight day, trading as much as 25 cents off the Sunday night highs. What has changed fundamentally this week? Well, not a whole lot. We have seen some rain work into the forecast for South America, but this is money flow, something we have talked about for the last few weeks in our daily reports and interviews with RFD-TV. When you get a move higher like we have had and funds positioned the way they are, you can see sharp pullbacks for no other reason than profit-taking. Does that mean the top is in? No. We expect to see a lot of great trading opportunities on both sides of the market in the coming weeks.
Technicals: Futures pulled back near our 4-star technical support, early this morning. We have defined that pocket as 408 ¾-413 ½. These technical pockets can be used regardless of your bias. If you are bearish and have been short, this is a spot to lighten up the position. If you are bullish, this is the pocket to consider buying into. We are moving our bias from Bearish/Neutral to Neutral/Bearish this AM.
Previous Session Bias: Bearish/Neutral
Resistance: 435 ¾-439½
Pivot: 422 ¼
Support: 408 ¾-413 ½****, 396-399 ½***
Fundamentals: Soybeans are sharply lower this morning, again. We have traded as much as 56 ½ cents off the Sunday night highs as friendly weather in South America has spurred a round of profit-taking. Money flow is something we have talked about for the last few weeks and the same thing that we said about corn applies to soybeans. When you get a move higher like we have had and funds positioned the way they are, you can see sharp pullbacks for no other reason than profit-taking. Does that mean the top is in? No. We expect to see a lot of great trading opportunities on both sides of the market in the coming weeks.
Technicals: We moved our bias to outright Bearish in our Monday morning report, from Neutral/Bearish (cautiously pessimistic) last week. We are changing back to Neutral/Bearish this morning with many of the price targets being achieved in the overnight/early morning trade. 1175-1176 will now be the first resistance. The bears have a near-term advantage until we see a consecutive close back above this level.
Previous Session Bias: Bearish
Resistance: 1175-1176***, 1200-1208 ½**
Pivot: 1154 ¾-1161 ¾
Support: 1138-1142 ½**, 1114 ¼-1120 ¼****
Chicago Wheat (March)
Technicals: Wheat futures are holding in there this morning despite the blood bath in corn and beans. We are moving our bias from Bearish/Neutral to Neutral Bearish. If you are bullish on wheat, this is not a bad spot to give it a go. If you have been short, we would tell you to consider reducing that exposure.
Previous Session Bias: Bearish/Neutral
Resistance: 608 ¾-611 ¾****, 619 ½-621***
Pivot: 596 ¾-599 ¼
Support: 574-574 ¾**, 563-569 ½****
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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. Past performance is not necessarily indicative of future results.