Grains markets setups, signals and targets

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Corn “C” – mini “ZC” – (July)

Coverage for May 31

Wednesday's open gapped up to the short-entry's 368, then surged sharply higher to eventually prove last week's prior high. A lot of energy was just expended in a short time just to travel from one end of the range to the other. Despite the intraday rally - or because of it - there is no signal whether this test of upper-end of the 3-week trading range will break higher, or hold. But trend followers already long might want to consider a stop under 379.

Short under 368 (met 5/29) for

356 target,

369 stop (met 5/30)

Wheat “W” – mini “YW”(July)

Coverage for May 31

Tuesday's close AT the 491 level failed to signal that a new downleg was underway. Buyers exploited the vacuum with a rally at Wednesday's open that surged higher still into the afternoon. A higher high is almost obligatory, and there is potential to new highs so long as there isn't a close under Wednesday's 512 close.

(Basis Jul) Short under 504 (met 4/24) for

474 and 448 targets,

508-1/2 stop (met 4/25)

Soybeans “S”- mini “ZS” (July)

Coverage for May 31

Tuesday's loss had broken the rally's back, but that didn't stop a rally Wednesday from retracing most of Tuesday's loss. The open's initial loss was reversed by a morning-long rally that peaked upon testing Tuesday's post-open high. The gap back to Friday's higher close wasn't filled, and probably should have been (or should be) since it's a magnetic attraction and it's so near. A new high close above 813 would signal that the rally's back had miraculously healed.

(Basis Jul) Long above 750 (met 5/11) for

781 (met 5/15) and 800-1/2 (met 5/21) targets,

804 stop (met 5/29)

Soybean Oil “BO”- mini “ZL” (July)

Coverage for May 31

Tuesday's drop didn't break under a prior relative low, so a trend change hadn't yet been signaled. The rally still appeared to be done, and still appears to be done, even after Wednesday's big gain from its lower open. A close above 35.90 would start to give buyers traction for another upleg.

(Basis Jul) Short under 32.65 (met 4/24) for

31.70 and 30.90 targets,

32.75 stop (met 4/25)

Soybean Meal “SM” – mini “ZM” (July)

Coverage for May 31

After Tuesday's steep drop, the pattern had one chance to recover: an immediate and substantial rally. Wednesday's lower open did reverse up sharply to retrace all of Tuesday's post-open loss. Neither buyers nor sellers are clearly in control, and one or two more days of consolidation are possible.

(Basis Jul) Long above 202.50 (reinstated 5/14) for

215.50 (met 5/21) and 222.50 targets,

216.00 stop (met 5/29)

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About the Author
Rod David

Rod David

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog http://IfThenSignals.com.

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