Prices for commodities including wheat, corn, soyabeans and vegetable oils have all been rallying sharply since mid-2020
Wheat gains on concerns over dry weather in northern hemisphere.
Looking at the overall technical model we see a topping process.
The next upside target for Wheat is 710.
However, since there is a projected high we are now looking for a good entry level to go short.
Its either once Wheat gets close to 710 – with a tight buy stop, or when Wheat elects a technical sell signal which is below 642.
Here too we are looking at a projected high in the Soybeans.
The strategy is either to short now at the market with a buy stop at 1502
Tuesday’s Session was
Cycle Day 2 (CD2): Price violated CD1 Low (4141.75) with a continuation trend lower during RTH fulfilling 4115, “down-range” objective. Range was 56.75 handles on 1.661M contracts exchanged.
…
This leads us into
Cycle Day 3 (CD3): Price is currently well below CD1 Low (4141.75) and typically has strong odds of recovering this level during Cycle Day 3 trading. Failure to recover would be marked as a “Statistical Cycle Failure” which only occurs 9% of the time tracked over twelve years of data. As such estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4123, initially targets 4137 – 4142 zone.
2.) Price sustains an offer below 4123, initially targets 4110 – 4103 zone.
Chart of the Day
Copper (MAY)
Last week, copper looked like it was breaking out a wedge consolidation but China clamping down erased the break. Now it has taken a second run and broken the mid-March high.
At GMTT we went long Copper last Wednesday at 4.04 and our target of 4.23 is reached. Very short term we get the next target of 4.29, while a good close above confirms a move towards 4.46. We suggest raising the protective sell stop to 4.21.
On another note Gold (JUN) – long from 1726 – reached our given target of 1789 and its next upside target is 1806. We raised this morning the protective sell stop to 1774 – but Gold only elects a sell signal below 1759.
Last week, copper looked like it was breaking out a wedge consolidation but China clamping down erased the break.
Now it has taken a second run and broken the mid-March high.
At GMTT we went long Copper last Wednesday at 4.04 and our target of 4.23 is reached.
Very short term we get a next target of 4.29, while a good close above confirms a move towards 4.46.
We suggest raising the protective sell stop to 4.21.
On another note Gold (JUN) – long from 1726 – reached our target given of 1789 and its next upside target is 1806.
We raised this morning the protective sell stop to 1774 – but Gold only elects a sell signal below 1759.
Bitcoin traded this week relatively speaking in a tight range and is looking for direction.
This morning BTC/USD reached our first downside target of 61375 – next target down is 60400.
A good close Below BTC/USD 60400 elects a sell signal with a projected downside target of 58900.
A good close above 63700 is needed to confirm the next key resistance level which is projected around 70k!!
The range for today is: 60400 – 63700.
Have a successful day and a nice weekend!
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