Head and Shoulders?

Corn (July)


Fundamentals: More sales of new crop corn to China were reported yesterday, this time to the tune of 1,224,000 metric tons. We believe that this will continue to offer some support to the December contract and potentially help narrow the spread between old crop and new crop. Analysts are expecting Monday’s crop progress to show the U.S. corn crop near 90% planted. Crop ratings will not be reported yet. Options expiration is today, which could play a role in price action.


Technicals: Consolidation has been the name of the game this week. The market made an attempt at first resistance yesterday from 673 ¼-676 but failed. As mentioned from the very start of the week, a failure against resistance will continue to form a head and shoulders (bearish) pattern on the chart. The Bulls must defend 629 ½-633 to prevent a further deterioration of the technical landscape. A break and close back below that pocket would likely trigger additional long liquidation, accelerating the selling pressure..........Click this link to read the FULL report and receive our daily commentary


Bias:

Previous Session Bias:

Resistance:

Pivot:

Support:

Soybeans (July)


Fundamentals: Argentina is estimated to be roughly 85% harvested, with an average yield near 41 bushels per acre. Yesterday’s export sales report showed net sales of 84,200 MT for 2020/2021 were down 11 percent from the previous week and 45 percent from the prior 4-week average. For 2021/2022, net sales of 96,000 MT were reported.


Technicals: July soybeans have traded as much as $1.55 ¼ off the highs from just eight sessions ago. Moral of the story: Risk happens fast! As mentioned in yesterday’s report: Previous support now becomes resistance, we have had that defined as 1574 ¾-1577 ¾. The Bear camp has a slight edge until the Bulls can reclaim that pocket, with conviction. Significant support comes in from 1506 down to 1490 ½. This is a much wider pocket than we would typically use, but the daily ranges are also much wider, which throws a lot of technical indicators out of whack. If you have been short the market and are looking for an exit strategy, this would be the pocket to consider working orders in..........Click this link to read the FULL report and receive our daily commentary


Bias:

Previous Session Bias:

Resistance:

Pivot:

Support:

Chicago Wheat (July)


Technicals: Chicago wheat futures are continuing to bleed lower in the early morning trade, marking new lows for the move and breaking below support, 674 ¼-680. A close below this pocket could extend losses into the mid 650’s. As mentioned in the previous two reports, we like reducing short positions against technical support and would be looking to reenter those shorts on a relief rally towards the psychologically significant $7.00 handle..........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



Sign up for your FREE trial of our daily Grain & Livestock Market Analysis and stay ahead of the curve!

Follow us on our social media sites to stay on the pulse of our latest research and commentary!


Twitter - twitter.com/bluelinefutures

Facebook - facebook.com/BlueLineFutures

YouTube - YouTube.com/BlueLineFutures

StockTwits - stocktwits.com/BlueLineFutures

Latest blog posts - bluelinefutures.com/blog


Blue Line Futures

312-278-0500

info@Bluelinefutures.com


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.

27 views0 comments

Recent Posts

See All