26 June 2017
BESTER DERIVATIVE TRADING TECHNICAL BRIEF
US DOLLAR INDEX
The US Dollar Index showed bullish promise and a possible change in theme last week, after reversal
patterns started to develop and resistance levels were breached. Towards the end of the week the Dollar
Index dropped back slightly to test the broken levels. The probability of a change in theme from a bearish
to a bullish US Dollar remains fair at the start of this week. Support at 97.20 must hold to keep bullish
hopes alive. Trend indicators remain bullish, but the chances for continued Dollar strength would look
better had the RSI kept its’ upward momentum. The US Dollar Index is back high inside a downward
sloping channel. Important resistance found at 97.5. If this resistance level at 97.5 is breached, a neckline
of a n inverted head-and-shoulder pattern will be breached, triggering technical buying interest targeting
the upper end of the red downward sloping wedge (major pattern) now at 99.5.
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USDZAR
The USDZAR is back to test support at 12.90. The technical picture remains elusive as a complex pattern
continues to develop around long term trend resistance lines. The picture does however favour a bullish
Dollar while it remains above support at 12.90. Resistance at 13.20 needs to be breached again to muster
stronger bullish sentiment.
CBOT CORN
Jul17Corn expected to trade inside a sideways trading range with support at around 350 and resistance
at around 390. Within this trading range, there is another narrower band, with support at 360 and resistance
at 380. Levels below 360 offer buying opportunities, while levels above 380 offer selling opportunities.
Bester Derivative Trading (Pty) Ltd ● Reg no 2007/029575/07
Telephone: +27(0)21 809 2500 ●Fax: +27(0)86 618 8924 ● [email protected]
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CBOT SOYBEANS
Jul17Soybeans dropped through support at 910 last week. This level has now become a resistance level.
A breach of 910 will trigger buy signals. Very strong support found at 890. I believe that the 890 – 910
area offers buying opportunities long- term. The current downward leg is the last leg before the bear market
reaches technical maturity.
CBOT SOY MEAL
Jul17Soy Meal dropped through support at around 300. The current downward leg is the final downward
leg targeting 285. The current downward leg offers buying opportunities.
Bester Derivative Trading (Pty) Ltd ● Reg no 2007/029575/07
Telephone: +27(0)21 809 2500 ●Fax: +27(0)86 618 8924 ● [email protected]
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CBOT SOYBEAN OIL
Jul17Soybean is near support at around 31.15. Weakness offers buying opportunities.
KCBOT HRW WHEAT
Jul17 HRW Wheat rolled over last week. Weakness will follow targeting 443. Levels below 443 offer
buying opportunities.
Bester Derivative Trading (Pty) Ltd ● Reg no 2007/029575/07
Telephone: +27(0)21 809 2500 ●Fax: +27(0)86 618 8924 ● [email protected]
PO Box 7329, Stellenbosch, 7599, South Africa
Director: GW Bester
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SAFEX CORN JUL17
This graph shows the movement of parity.
SAFEX WHITE MAIZE
Jul17WM Options close out today. Support at 1700 is being threatened and may fail to hold once the
options are out of the way after today. A breach of support at 1700 will bring the 1320 target level into
sight.
Bester Derivative Trading (Pty) Ltd ● Reg no 2007/029575/07
Telephone: +27(0)21 809 2500 ●Fax: +27(0)86 618 8924 ● [email protected]
PO Box 7329, Stellenbosch, 7599, South Africa
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P a g e |6
SAFEX YELLOW MAIZE
Jul17YM Options Close out today. Support at 1850 failed on Friday. The downward target is found at
1480.
SAFEX SOYABEANS
Jul17Soybeans Options close out today. Jul17Soy must hold above 4475 today to maintain a bullish bias.
Trend indicators are bullish.
Bester Derivative Trading (Pty) Ltd ● Reg no 2007/029575/07
Telephone: +27(0)21 809 2500 ●Fax: +27(0)86 618 8924 ● [email protected]
PO Box 7329, Stellenbosch, 7599, South Africa
Director: GW Bester
www.bester.co.za
P a g e |7
Market Brief written by Johann Reinecke
Tel: (021) 809-2547 or 082 770011 4
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Bester Derivative Trading (Pty) Ltd ● Reg no 2007/029575/07
Telephone: +27(0)21 809 2500 ●Fax: +27(0)86 618 8924 ● [email protected]
PO Box 7329, Stellenbosch, 7599, South Africa
Director: GW Bester
www.bester.co.za