The four month trend line support gave out in nearby corn futures today, likely triggering sell stops and encouraging some of the estimated net long 90,000 “managed money” futures and options traders to seek an exit over the short term.
Closes like this have the potential to attract additional short term pressure, despite an encouraging fundamental picture. Look for old support to become new resistance. Bulls may want to see a close back above 375’0 or drop to support/oversold condition before resuming significant buying. Next support is the November low at 367’2.
- Soybeans still hold trend line support,
- Soymeal is within 3.0 of long term lows,
- Wheat turns away from 50 day moving average again, back on support area,
- New contract high closes for nearby cattle,
- Rough Rice turns sharply lower, entering value buy area soon?
- Crude oil glued to 50 day moving average resistance,
- USD strengthens as UK rejects “Brexit” plan.
Contact your broker to discuss your trading or hedging plan!
This article originally appeared in the Technical Ag Knowledge Newsletter “Corn Support Breaks, Soybeans Hold **VIDEO**” on 01/15/19.
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