Wheat Is Hanging on by a Thread
Wheat (July)
Technicals: Wheat futures are on the verge of a bigger technical breakdown if they cannot get back into positive territory today. The next support level below here doesn’t come in until 925-930, with the more significant pocket not coming in until 897-902.
Bias: Neutral/Bearish
Previous Session Bias: Neutral/Bearish
Resistance: 1027 ¼-1034 ¼****, 1095-1102****, 1142 ¾-1150***
Pivot: 982
Support: 960-967 1/4**, 925-930**, 897-902***
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. Past performance is not necessarily indicative of future results.
WEAT
Wheat Breaks Down to a MUST HOLD Support Pocket Wheat
Technicals: Wheat futures got taken to the woodshed yesterday, breaking below the low end of support which we had defined as 1027 ¼-1034 ¼. In yesterday’s report we noted that a failure of the Bulls to get back out above this pocket and “we could see the selling pressure accelerate.”. Our next support levels below that pocket didn’t come in until 982 and 967 ¼, both of which have been achieved. As mentioned in yesterday’s Tech Talk, we wouldn’t be surprised to see the market consolidate and even rebound off of these lower support levels. Eventually, we think they will give way, and there’s not a lot of support until sub $9.
Bias: Neutral/Bearish
Previous Session Bias: Neutral/Bearish
Resistance: 1027 ¼-1034 ¼****, 1095-1102****, 1142 ¾-1150***
Pivot: 982
Support: 960-967 1/4**, 925-930**, 897-902***
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. Past performance is not necessarily indicative of future results.
WEAT Breaking Below SupportWEAT is breaking down as grain futures get hit hard following a long holiday weekend. July Chicago wheat is currently down 35 cents. July KC Wheat is down 49 cents. We write daily grain commentary and have noted many times over the last few months that a lot of the Bullish news is already known and baked into the cake. No new news to feed the Bulls could trigger additional long liquidation.
Wheat Futures Break Below Support Wheat
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net sellers of 5,736 futures/options through June 14th. This shrinks their net long to 6,939. Broken down that is 77,203 longs VS 70,264 shorts.
Technicals: Wheat futures are breaking below the low end of the trading range, trading to their lowest price since the first week of April. Previous support now becomes resistance, if the Bulls cannot reclaim ground above 1027 ¼-1034 ¼ we could see the selling pressure accelerate.
Bias: Neutral/Bearish
Previous Session Bias: Neutral
Resistance: 1095-1102****, 1142 ¾-1150***, 1200-1205 ¼**
Pivot: 1027 ¼-1034 ¼
Support: 982**, 967 1/4**
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. Past performance is not necessarily indicative of future results.
Wheat: More of the Same, Trading in a RangeWheat
Fundamentals: This morning’s weekly export sales report showed net sales of 236,900 metric tons (MT) for 2022/2023.
Technicals: Wheat futures were able to defend technical support yesterday, we’ve had that defined as 1027 ¼-1034 ¼. If you’re Bullish, this is a spot to consider buying against as the risk is fairly well defined. If we break and close below that pocket, that would be your sign to take the L and move on. If the Bulls are able to continue defending that pocket, we could see a retest of our pivot pocket, 1095-1102.
Bias: Neutral
Previous Session Bias: Neutral
Resistance: 1142 ¾-1150***, 1200-1205 ¼**
Pivot: 1095-1102
Support: 1027 ¼-1034 ¼****, 982**, 967 1/4**
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. Past performance is not necessarily indicative of future results.
Wheat Futures Test Significant Support
Wheat
Technicals: Wheat futures came within a stone's throw of 4-star support overnight, we've had that labeled as 1027 1/4-1034 1/4, the low was 1036 1/2. If you're Bullish (we aren't) that is a good spot to consider buying as the risk is fairly well defined. A break and close below that pocket could open the door for a break back below $10.00 and below, with the next significant support coming in closer to 975.
Bias: Neutral
Previous Session Bias: Neutral
Resistance: 1142 ¾-1150***, 1200-1205 ¼**
Pivot: 1095-1102
Support: 1027 ¼-1034 ¼****, 982**, 967 1/4**
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. Past performance is not necessarily indicative of future results.
Daily Wheat Market Update (6.14.22)Wheat
Technicals (July): More of the same for wheat, as we continue to trade in a range, albeit a wide range. Wheat futures continue to chop around from about 1030 on the low end and 1100 on the high end. A breakout or breakdown from these levels could pop or drop the market 50 cents relatively quickly. Our bias is Neutral at the moment, but we would be looking to be lean bearish at higher levels. When we say higher levels, we are talking about a retracement of the May 31st breakdown point near 1150.
Bias: Neutral
Previous Session Bias: Neutral
Resistance: 1142 ¾-1150***, 1200-1205 ¼**
Pivot: 1095-1102
Support: 1027 ¼-1034 ¼****
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. Past performance is not necessarily indicative of future results.
Wheat Futures, the Modern Day Yo-YoWheat
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net sellers of 2,905 futures/options contracts, through June 7th. This shrinks their net long position to 13,774. Broken down, that is 82,385 longs VS 68,611 shorts.
Technicals: Wheat futures continue to chop around in a wide range, from about 1030 on the low end and 1100 on the high end. A breakout or breakdown from these levels could pop or drop the market 50 cents relatively quickly. Our bias is Neutral at the moment, but we would be looking to be lean bearish at higher levels. When we say higher levels, we are talking about a retracement of the May 31st breakdown point near 1150.
Bias: Neutral
Previous Session Bias: Neutral
Resistance: 1142 ¾-1150***, 1200-1205 ¼**
Pivot: 1095-1102
Support: 1027 ¼-1034 ¼****
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. Past performance is not necessarily indicative of future results.
WEAT ETV To Play The Future Price of WheatWEAT's price, an ETV which trades wheat futures, is positioned to keep increasing as the horrible war in Ukraine rages on.
I accumulated this back at the $6.5 - $7 price level as a response to the decrease in fertilizer (thank you China for hoarding and mismanaging) and increases in crop disruption due to climate change related disasters. As you can see, it was chugging along nicely within the channel I drew back in Sept. I was expecting the continuation of nice returns as I've been playing the top and bottom of the channel. I had no idea that the #1 and #5 producers of wheat would go to war before spring planting and now we can expect the price of wheat and wheat futures to sky rocket. There is supply side destruction for at least one year that is being priced in right now but the decrease in fertilizer and climate disruption effecting the rest of the producers has not. Where the market hasn't yet priced something in, there is profit to be made.
Wheat and thus WEAT's price has open skies once it breaks through the $12.65 level and the broader cup, of the cup and handle formation it has been forming for years, will be put in at $24.65, then down to put in the handle, reset and then put in a big impulsive wave up.
Technical Update Wheat (6.8.22)Wheat
Technicals: July wheat futures have been the laggard of the big-3, treading near the lower end of the last month’s range. Our pivot pocket from 1095-1102 remains intact. This pocket is not only psychologically significant, but also technically significant with the 50-day moving average coming in at 1099 ¾, along with other previously important price points. If wheat can tag along with corn and beans and breakout above that first hurdle, it could take prices back near first resistance, 1142 ¾-1150.
Bias: Neutral
Previous Session Bias: Neutral
Resistance: 1142 ¾-1150***, 1200-1205 ¼**
Pivot: 1095-1102
Support: 1027 ¼-1034 ¼****
WEAT retraced 50%; watch for BO of triangleI made this on the request of someone who shorted WEAT.
WEAT, like other commodities oil & gold, is still trying to BO of a triangle. Watch carefully which direction is breaks.
Although I think the Ukraine crisis is far from over, WEAT may still have some room to retrace specially when inflation takes a breather before continuing upwards. WEAT so far retraced FIB 50%, the next 2 supports are the 61.8% & 78.6%( less likely).
Zooming out to see the big picture, WEAT has yet to reach a higher 68.8% FIBO from top to bottom.
Just maybe in the long term, WEAT is going up to complete the neck of a CUP formation. With rising inflation coupled with supply crisis, I think there is still more upside.
Not trading advice
WEAT UpdateSlowly crushing all levels put out previously
There is absolutely nothing going against this trade:
1. Inflation is positive for the price
2. Logistics and all of the shipping BS is positive
3. Winter is coming...can harvest more supply until next year
4. What am I missing?
5. You know what happens after you put a claw like looking rounding bottom like this?
It is just getting started. Plenty of notice given.
WEAT under pressure?Not really. Instead it's building pressure!
All the messing around in the sideways area (dark red) is usually managed to "load the boat".
If price breaks out to the upside, there's even a chance that we could forget to find a entry like I have projected with the arrows.
What also pops into my eyes is the slightly exponential curve that's begin to build with the last couple bars...
Putting the Toe into the water is not a bad Idea for me. If the scenario becomes real, I would load up on new pullbacks.
P!