Yesterday marked the third straight day of gains for many of the grain markets, can the rally continue through the week?
Oliver Sloup touched on three markets that have caught his eye in the first week of this week’s trade.
We’ve shifted our focus to the July futures contracts as the volume starts to increase there and decrease in May futures. May options expiration is this Friday, which means first notice day is next week. If you’re in May futures, you may consider exiting or rolling those positions.
Corn
Technicals (July)
July corn futures were able to chew through and close above our pivot pocket in yesterday’s trade, we’ve outlined that as 449 1/2-451. This will now act as the support pocket the Bulls want to defend. If they can do that, we could see continued upward momentum towards our 4-star resistance pocket from 456 1/2-460. The three-day rally in wheat has added a tailwind to corn, so we will be keeping an eye on that price action as well.
Bias: Bullish/Neutral
Resistance: 456 1/2-460****, 471-471 1/2***
Pivot: 449 1/2-451
Support: 441 3/4-444 1/2***, 433 1/4-436****, 422 1/4-424 1/4***
Soybeans
Technicals (July)
July soybean futures achieved a higher close yesterday which marked the third day of the rally, which has been nearly 40 cents since the recent lows. The rally has so far stalled this morning as prices hit our first resistance pocket which we’ve outlined in our morning reports as 1182 1/4-1186 1/4 (the overnight high so far was 1186). If you had been long from support, this may be a pocket to consider reducing against. If you’re bearish or need downside protection, this may be an opportunity to explore that. If the Bulls are able to find their footing and do get out above resistance, the next upside target would come in from 1199 1/2-1204. This pocket is both technically and psychologically significant.
Want to read the full report?
Open an account with Blue Line Futures and you will gain access to our daily commodity commentary, free desktop/mobile trading platforms, 24-hour trade desk, and more!