More Trouble in the Black Sea
Posted: Aug. 4, 2023, 8:06 a.m.
CornTechnicals (December) December corn futures are trying to bring the 8-day losing streak to an end with futures trading back above the psychologically significant $5.00 handle in the early morning trade. As mentioned in our interview with RFD-TV yesterday, we've got a lot of bad news thrown at the market over the last few weeks from continued talks of high carryout and poor demand to yield estimates of 177-178 with friendly forecasts. This is no longer new news to the market. What's the next bearish headline that could be thrown at the market? If there is none, it could provide enough of a reason for a short covering rally. That's not to say the low is in and we are going to rip higher. We still feel rallies are meant to be sold but think there's an opportunity to bounce from these levels. Bias: Neutral/Bullish Previous Session Bias: Neutral/Bullish Resistance: 518-525 3/4****, 540 1/2-545*** Pivot: 497-502 Support: 480-482*** |
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Soybeans |
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Technicals (November) November soybeans appear to be tethered to the 200-day moving average, trading on it for 5 consecutive sessions, that comes in at 1334. We are upbeat at soybeans from these levels, switching our bias into Bullish territory yesterday. To further confirm this bias, we want to see a close back above 1350-1355. This could open the door for a run back at the Sunday night gap which comes in from 1375-1379. A break and close below this week's low would neutralize that bias as it could take prices back to the 50 and 100-day moving averages (red and blue line in chart below). Bias: Bullish/Neutral Previous Session Bias: Neutral/Bullish Resistance: 1350-1355**, 1368-1378***, 1390-1400*** Pivot: 1324-1334 Support: 1291-1300**** |
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WheatTechnicals (September) In yesterday's report we moved our bias from outright Neutral to Bullish Neutral as the market tested our 4-star support pocket from 622-632. In yesterday's report we noted: "We are moving our bias into Bullish territory as we feel this pocket represents a good risk/reward setup to the buy-side. A break and close below would neutralize our bullish bias.". If you had bought against support yesterday, this may be a spot to consider lightening up exposure as these rallies have been short lived. Bias: Bullish/Neutral Previous Session Bias: Bullish/Neutral Resistance: 693 1/2-698 3/4***, 744-745*** Pivot: 677-680 Support: 622-632**** |
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