With the USDA report unleashing further buying pressure into an already bullish grain complex yesterday, corn, wheat and beans finished with the substantial upside gains and among the largest percentage gainers on the commodity board.
But to be certain, the real opportunity to take long positions in these commodities wasn’t on the report release. The clear buying opportunity revealed itself last week.
Looking at the charts of each of these grains side-by-side, the volume profile analysis shows buying opportunities in corn and beans on Thursday of last week, 6/25, and on Friday, 6/26, for wheat.
Buyers of corn on the break above 385 have to be pleased looking at yesterday’s closing price at 431’4. That’s up 12% in just three trading sessions.
Buyers of wheat on the break above 550’4 are looking at similar 12% gains in just two trading sessions at yesterday’s 615’6 close.
Buyers of soybeans on the break above 968 last Thursday are smiling as well with 7% gains at yesterday’s closing price of 1037’2.
If you’d like to see more about how to use volume profile analysis in your trading click here.
