NEW HIGHS BUT CONCERNING CLOSE

Written By Sebastian Frost

AUDIO COMMENTARY

  • Grains make new highs but fail & reverse

  • Chinese stimulus news overnight

  • Should you reward the rally?

  • Bean chart looks slightly concerning today but nothing major

  • Strategies to protect you

  • Argument to be made that beans could be $1 higher or lower

  • 2/3 days that look somewhat like reversals

  • If you are selling take advantage of carry

  • When to utilize puts

  • China economy situation could be really friendly

  • Driest Aug-Sep doesn’t scream record yields

  • Market thinks there is plenty of grain, hence the carry

  • How to keep the upside open

  • Selling options vs buying options

  • Big USDA report on Monday

  • Detailed corn chart breakdown below*

  • Technical chart breakdowns below*

Listen to today’s audio below

CHARTS

Dec Corn 🌽

We continue to reject off that pink line (scroll to see significance of that line)

That green box is still my current first target $4.23-26. That was our July highs and the implied move of the bull flag.

This is how important this line is.

Old support turned new resistance.

We have rejected off this line several times.

Here is a closer look.

Looking at a little longer term target, if we can break $4.23-26 range (green box)

The next point of resistance is $4.46 (purple line)

Nov Beans 🌱

Not good price action today.

Technically, we did reach my target (green box $10.65-80)

Doesn’t mean the run is over, just something to check off.

If this $10.42 support area doesn’t hold, the next support is $10.31 then $10.18 range.

I still like taking risk off in that green box ($10.65-80)

Dec Wheat 🌾

We invalidated the head & shoulders pattern I mentioned the last week.

However, we continue to reject off that new downward trend.

Crucial support remains at $5.65

Targets are still $6.12 and potentially $6.40

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sfrost@dailymarketminute.com

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Sebastian Frost
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BEAN SELL SIGNAL
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HIGHEST CLOSES SINCE JULY. UPSIDE & SALES CONSIDERATION