July Sugar -The recent counter-trend rally in Sugar looks hit stiff resistance at the 20- day EMA on Friday’s projected reversal date. The market closed well off the high, leaving a bearish tail. This price action is forming a bearish reaction swing and a new swing trading opportunity. Check the TMV Swing Trade report for updated recommendations.
July Wheat – Wheat traded lower into Friday’s projected reversal date. The market closed below the longer-term upward trending parallel line, suggesting there may be more downside potential. However, the market could see a one or two-day corrective rebound and retest the parallel line, before resuming the downward trend.
July Soybeans – The market continues to consolidate between the 20-day EMA (above) and a three point trend line (below). Monday is the projected reversal date and could act as the trigger for a breakout. I need to wait for the market to reveal the next direction before making a move on the market.
Reversal dates can be an important factor when building an effective swing trading strategy when the proper pattern sequence is completed.