Soybean Meal Enters Support Zone

Soybean Meal soared 61% from late April 2020 into its mid-January 2021 peak. Since then, we have seen prices fall back to the 38% retracement of that rally. This 14% correction has touched the top of a potential major support zone. If you look at all volume traded between April 2020 and now you will find a large volume @ price cluster between 398.10 and 375.10. Inside this cluster is an even larger one between 390.90 and 381.20. This entire zone’s point of control (POC) is around 385.90. Further supporting this area are the 34 EMA wave (weekly chart), the 100% ABCD projection, and a Fib extension cluster. Long trades could be placed inside the 390.90-381.20 zone with stops below 375.10. A trade entered at the POC around 385.90 with a stop at 375.00 would be risking 1090.00 per contract. The largest upside obstacle would be between 417.60 and 424.70. This could be a first target area on any long trades. The recent January high at 471.40 would be the longer term target.

Swiss Franc Nears Support

The Swiss Franc currency had a healthy 12% rally from March of last year into its recent January 6th high this year. However, since peaking last month this currency has now slowly drifted almost 3% lower. How much lower will it go? Let’s check out the continuation chart. Price action is currently trading at the upper end of a significant volume at price (V@P) cluster. If we look at all volume traded between the March 2020 low and the January 2021 high you will find the most volume was traded between 1.1037 and 1.0890. This V@P cluster has a point of control (POC) around 1.0980, which is the price level where the heaviest volume traded during a specific time frame. Most of this volume was created from the sideways price action between July and December of 2020. This consolidation phase saw prices break to the upside in early December, which shows traders were adding to their long positions. I expect this area to serve as support on the way back down. Other factors that could provide further support to this zone are the 200 DMA and the 34 EMA wave on the weekly chart. I would look for long trades anywhere inside 1.1037 and 1.0890 with special attention to the POC ~ 1.0980. This potential support zone falls apart with a move below 1.0851. Potential risk with an entry at the POC and a stop @ 1.0850 would be 1,625.00 per futures contract. An aggressive upside target on this trade would be the recent high around 1.1441 for a profit of 6,887.50. But there are two large V@P clusters to deal with on any move higher, which could be good levels to scale out of any multiple lot positions. Stay tuned for more updates on Twitter.

Futures Markets Trend Zone EOW 01/29/21

I look for pullback trade set-ups in trending markets and one helpful tool I use is my trend map. I follow 37 markets and break down each market into 5 categories:

double green (very bullish)(5)
single green (bullish)(4)
yellow (neutral or sideways)(3)
single red (bearish)(2)
double red (very bearish)(1)

Here is my futures markets Trend Zone as of Friday’s close. The overall tone of the markets dropped to its lowest bullish rating since October 30th with total bullish markets edging lower from 24 to 19. The most interesting group to me right now are the currency markets. It appears the Dollar could be forming a short term rally as most of the currency markets have gotten a bit overextended. I think this could be the start of a small correction or sideways chop for awhile. There are some strong volume @ price clusters that could prove interesting levels to re-enter these currency markets for a resumption of recent trends. I will be keeping my eye on them.

Double_GreenSingle_GreenYellowSingle_RedDouble_Red
Very_Bullish (5)Bullish (4)Neutral (3)Bearish (2)Very_Bearish (1)
@BO@FC@AD@EC@US
@BP@FV@CD@GC@OJ
@C@LC@ES@JY
@CL@LH@HG@MP1
@HO@SI@PL@NG
@NE1@W@SM@SF
@NQ@DX@YM@CC
@RB@SB@TY
@RTY@KC
@S
@CT
118972
29.73%21.62%24.32%18.92%5.41%

Futures Markets Trend Zone EOW 01/22/21

I look for pullback trade set-ups in trending markets and one helpful tool I use is my trend map. I follow 37 markets and break down each market into 5 categories:

double green (very bullish)(5)
single green (bullish)(4)
yellow (neutral or sideways)(3)
single red (bearish)(2)
double red (very bearish)(1)

Here is my futures markets Trend Zone as of Friday’s close. The overall tone of the markets edged up 1 from 23 to 24. Here’s the breakdown:

Double_GreenSingle_GreenYellowSingle_RedDouble_Red
Very_Bullish (5)Bullish (4)Neutral (3)Bearish (2)Very_Bearish (1)
@AD@LC@SF@EC@TY
@BO@LH@SI@FV@US
@BP@MP1@FC@GC
@C@W@DX@JY
@CD@KC@CC@NG
@CL@OJ
@ES
@HG
@HO
@NE1
@NQ
@PL
@RB
@RTY
@S
@SM
@YM
@CT
@SB
195562
51.35%13.51%13.51%16.22%5.41%

Crude Oil Ready for Pullback?

Crude Oil has seen a nice rally from its April lows, but it will it continue? Let’s take a look at the continuation chart. Prices are currently trading inside a large volume @ price cluster between 51.00 and 57.40. This cluster formed during the downwards move off the October 2018 high when it traded sideways from December 2018 until February 2020. This could prove to be an area of stiff resistance. Friday saw the first sign of weakness since entering this zone on January 7th by forming a bearish engulfing candle. This also formed near January’s monthly R2 pivot point. Prices are also a bit overextended compared to its 34 EMA wave. I think we could see a correction back into this area between 47.30 and 49.10. This area also contains another volume @ price cluster that could provide further support. Let’s watch how the next couple of weeks unfold.