ZS Long — $ZSN26 pullback into 1200-1202 support after flushing

Setup: The 4h chart shows ZS bottomed near 1165 in mid-March and carved a higher-low structure through April, culminating in a sharp impulse leg from 1175 to 1226 into May 4. After that peak the contract sold off hard over May 5-6 with elevated volume — a distribution flush that ran from 1226 down to the 1183-1185 zone. Price has since bounced and is currently reclaiming the 1200-1202 shelf, which served as consolidation support during the late-April ramp. The 1h chart shows the bounce off 1183 low was decisive, with the May 7-8 session grinding back through 1190s and now tagging 1208 into the close. The key structural level is 1200-1202 — the prior range highs and the launch pad before the May 4 breakout.

Flow: Grain complex broadly firming with ZW and ZC also bid, consistent with DXY weakness and commodity tailwinds. Non-commercial net long remains heavily elevated at +193,939 contracts, though open interest dropped sharply (-93k WoW) suggesting some speculative liquidation — the flush from 1226 to 1183 was consistent with that unwinding. The surviving net long position with a recovering price suggests the washout is absorbing weak longs rather than reversing the trend. Broad risk-on tape and DXY weakness provide macro tailwind for the commodity complex.

Plan: Stop sits below the May 7 swing low at 1183-1185 — a close below 1187 invalidates the higher-low recovery thesis and suggests the distribution is extending. Target is the prior high cluster around 1222-1226 from the May 4 peak — a full retrace of the selloff. R/R is approximately 2:1 from current levels. TTL is set to allow price to digest and retest the 1200-1202 zone; if it cannot hold that shelf on a pullback within the session, the setup fails.

📍 Entry: 1202.00
🛑 Stop: 1187.00
🎯 Target: 1222.00
⚖️ R:R: 1.33