There are two trend lines to watch in SF13. Upper resistance is $13.00 Bottom support is 12.70, but a settlement below yesterday’s low at 12.69 would be a bearish signal. As with all T-lines, there’s a possibility of getting chopped.
The sentiment is bearish. Which is why I am more bullish than bearish. I would love to sell SF at 1293 to 1299.
IF we settle below 12.69 that opens a door down 20 cents to 12.50.
This is the time of year it can get kind of thin and choppy. Funds remain a massive long. Farmers have been selling off the combine.
There was some bearish news from Argentina about an over hang of supply to the tune of 5 mmt.
If you are buying against the trend line, make sure you have your stops in below so you don’t get run over if it heads south quickly.
Maintain an open mind and stay disciplined, but a break out above or below these trend lines could give us direction for the next 4 to 6 weeks.
CER