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🖐🏻Five Charts In Five Minutes #11
At least once a week we go over light technical analysis of grain and oilseed futures contracts. Subscribe to our newsletter, join our Telegram channel, or watch for our Twitter updates for latest posts. Feel free to manage your subscriber preferences at the bottom of this e-mail to fine tune which topics you wish to be subscribed to.
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Corn Futures 🌽
Corn continues to hold onto its gains in the market, tempting the bulls to add more length to their position and bears trying to hold their line of defense. Time will tell, but there is more and more indication that a move up could be in the cards. Watch the price action at the 6.85 level as a last line of defense for bears and for bulls a violation of the bullish uptrend.
🟢Current upside targets: 6.85 and 7.00
🔴Current downside targets: 6.74 and 6.70
Wheat Futures 🌾
Last week wheat prices failed to settle above the 8.09 level, creating a rather large trading range between 8.09 and 7.20. We believe now that wheat will stay in this range for some time as the market figures out if we are trending up, sideways, or lower with the range high and low to be tested.
🟢Current upside targets: 7.84 and 8.09
🔴Current downside targets: 7.56, 7.51, and 7.27
With a gap left on the charts and a bullish close today (2/21), traders will place bets that soybeans futures will rally further and approach their contract high of 15.67 on the May contract. If highs are not achieved, be on the lookout for the gap left on the charts to be filled over the next few days.
🟢Current upside targets: 15.46 and 15.67
🔴Current downside targets: 15.27 and 15.10
⚠️Mind the gap at 15.27
Soybean Oil Futures 🌱🛢️
Soybean oil successfully broke out of its descending triangle pattern late last week causing technical buyers to chase the rally upwards. We now have a short term up trend established with defined upside targets stuck in an overall downward trending market. We believe this short term trend will eventually run out of steam and revert to a downward trending market, but until then, respect the trend.
🟢Current upside targets: 64.00 and 64.38
🔴Current downside targets: 61.30, 59.83, and 59.00
Soybean Meal Futures🌱🐮
Soybean meal continues to hold its gains at the top end of the range. With the strength exhibited in the complex, it might be some time for this market to end on a low note. We will continue to abstain from market commentary and let the cash market figure it out. Regardless, when the tables turn and the bears are in control, funds hold an enormous net long position in the contract, which may prove difficult to liquidate.
🟢Current upside targets: 485 and 489
🔴Current downside targets: 476 and 467
With under a week before March (H) futures first notice day, we’re ending the month on a rather bullish note for most of the grains complex. Will those gains hold and proceed to higher prices? Possibly, but for now the trend does seem to point to higher prices and that trends needs to be respected until it breaks.
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