Wow.. it seems like a lot has happened in our country this weekend.
Alright let us switch our focus back to next week and whats in store for all of us.
We will first look at the S&P500 Futures.
Let us first look how we closed last week:
Opened 1372.25 from last close of 1375
High: 1403
Low: 1354
Closed: 1399
Our levels for last weekend's update was:
The possible upper weekly range is: 1400
The possible lower weekly range is: 1328
The S&P on Monday went down to test the low of the flag but closed near the middle of its bar. Then on Tuesday, we traded to a positive inside day bar which started the rally towards the end of the week to break upside from the flag pattern.
We closed the week as a nice big green healthy bar. Our possible high of the week which we posted last weekend was 1400. Price actually traded beyond that briefly and closed the week 1399 which was just a point away from our weekly range.
Its interesting to see where we will trade next week as a positive move in the US would slow down the market decline currently facing us here in the local market. As we broke out of the flag pattern on the upside, we will assume that this is the direction where the market wants to go.
But at the same time, we will want to be alert because it is not unusual for price to break out of a pattern and then quickly pull back into the pattern. If this were to happen, many of the new early bulls would be caught long and would have to cut their losses at some point which would accelerate the pull back into the flag pattern. We will let price action guide us in any case.
I will be updating you on the movements daily through our morning updates so be on the watch out for that too.
Here are the ranges for next week:
The possible upper weekly range is: 1420
The possible lower weekly range is: 1354
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Alright lets move on to the CME grains which can effect our FCPO.
We will start with Soybean Oil Futures first.
Alright lets see how we closed for the week:
Opened 56.18 from last close of 56.12
High: 56.36
Low: 55.33
Closed:55.61
Our levels for last week was:
The possible upper weekly range is: 57.50
The possible lower weekly range is: 55.20 and an outside chance of reaching 54.80.
So.. we traded to a small inside bar last week. We did go down to test near the low of our weekly range but only reached 55.33.
A small bar basically means a one bar trading range in a weekly chart and on a daily chart, it looks like a flag pattern. What usually happens after a small inside bar? Well, 2 things can happen. 1) we continue to consolidate and gather energy, and 2) we break out from the small bar. An upside break above the small bar means a bullish break and a downside break below the low of the small bar means a bearish break.
At this moment, we closed the week as a red bar. Soybean Oil was one of our two stronger contracts but last week saw that we are pausing for the next move. We we are not able to test the top of the triangle again last week, this will mean that this top triangle trend line will be a major resistance again. But with the Soybean, Wheat and Corn closing strongly for the week, perhaps we can have an upside breakout here next week?
Here is the weekly range for next week:
The possible upper weekly range is: 57
The possible lower weekly range is: 55
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Soybean Futures
Alright, lets look at how our star grain performer did last week.
Opened: 1450.25 from last close of 1458.75
High: 1506.75
Low: 1437.75
Closed: 1494.25
Our weekly range for last week was:
The possible upper weekly range: 1480 and an outside chance to test 1500.
The possible lower weekly range: 1402
Wow.. Soybean remains strong and the rally is still on! We closed the week as a nice green healthy bar!
Price actually went up to test our upper weekly range of 1500 and traded beyond it to touch a high of 1506.75 and came back down to close at 94.25.
I think that Soybean's strong performance has held up the price of most of the grains product that we are following last week. Soybean posted new recent highs while Wheat and Corn recovered from the lows.
I want to see how this contract perform because if it continues to perform strongly followed by the other grains product, perhaps we can have an upside breakout for our FCPO from the recent range.
Here are the possible weekly range for next week.
The possible upper weekly range: 1525
The possible lower weekly range: 1437
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Wheat Futures
Opened: 623 from last close of 616.50
High: 655.5
Low: 621.25
Closed: 649.25
Our weekly range for last week was:
The possible upper weekly range: 646
The possible lower weekly range: 600 should hold and next is 591
Wheat rallied from the low at the lower triangle trend line and actually closed into the smaller triangle pattern. It traded past our upper weekly range which I think is a bullish signal. We closed the week as a green healthy bar which is a good thing. Wheat was one of the weaker performer among all the grains product which was testing the support below.
If Wheat and Corn can continue to recover from the lows in addition with the strong performance in our Soybean and a upside breakout from our Soybean Oil, then perhaps our FCPO can break upwards and go up too.
So we will follow the performance of this contract closely with the other grains product too.
Here are the weekly ranges for next week:
The possible upper weekly range: 670
The possible lower weekly range: 650
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Corn Futures
Corn traded to these weekly levels:
Opened: 603.25 from last close of 601
High: 629.5
Low: 599
Closed: 626.5
Our weekly ranges for last week was:
The possible upper weekly range: 640
The possible lower weekly range: 583
We traded within our weekly range and closed as a green healthy bar too. This is a breath of relief because Corn was the weakest performers among all the other grains product that we are following.
If you look at the chart, you will see that this week's range was almost the exact identical of last week's. This is called a twin reversal bar which is quite a bullish signal. Will we be able to close back into the triangle pattern? This remains to be seen and that's what I would hope for too! Because if it does, and the other grains product rally too, FCPO will have a good chance for an upside breakout from the recent range too.
Here are the weekly range for next week:
The possible upper weekly range: 665
The possible lower weekly range: 605
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I will update the FKLI and FCPO weekly and daily range tomorrow morning.
So goodnight and talk to you all tomorrow morning!
Best Wishes,
Tech Trader
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