I’ve done everyone the convenience of converting cents to dollars. So that a price of 1275’2 (in cents) reads 12.752 (or $12 dollars and $0.752 cents).

 

The pivot points are based on an SFO article in December 2004 by John Seekinger titled Take a Two-Dimensional Approach. He offers these tips.

 

Corn Futures (continuous contract in front)

S2

S1

Pivot

R1

R2

4.695

4.829

4.927

5.061

5.159

 

Soybean Futures (continuous contract in front)

S2

S1

Pivot

R1

R2

12.689

13.217

13.539

14.067

14.389

 

Wheat Futures (continuous contract in front)

S2

S1

Pivot

R1

R2

6.153

6.269

6.457

6.573

6.761

 

  • Seekinger doesn’t look at the range of S2 to R2 as support and resistance levels. Rather, he considers them oversold (S) and overbought (R) areas.
  • S2 to R2 range of values across daily, weekly, and monthly periods: If two values are close together then they lend more significance to the area.
  • If the market trends on day 1, the odds rise tremendously that the market will be range bound between daily S1 and daily R1 the next day.
  • In a quiet market when traders are waiting for an important earnings announcement or economic report, look for daily R1 and S1 levels to hold and for the market to return to the daily pivot.
  • A move outside of daily R1 or S1 usually does not mean a breakout.
  • The odds suggest that the entire week’s price action will remain between weekly R2 and S2.
  • Avoid going long when the market moves above weekly R2 (it’s overbought) and avoid going short when price moves below weekly S2 (oversold).
  • Consider going short at weekly R1 or long at weekly S1 with a profit objective of the weekly pivot.
  • Consider going long at weekly S2 or short at weekly R2 with a profit objective of weekly S1 or R1, respectively.

Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. The use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.