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Tech Guy Comments 5/11/23

The continuation (July) soybean meal daily chart confirmed the Doji-star bottom (reversal up) today by marking a solid up (green bar) day. To sum it up, The Doji-star is a 3 bar pattern - red down day, doji-star day, then green up day.

This bottom in soymeal will also be supportive for the soybean bulls. The same bottom is confirmed on the September meal contract. Here is today's continuation soymeal chart.

Take a look at the September soymeal chart so you don't have to take my word for it. Seeing is believing.

Inverted head & shoulders, double bottoms, and broadening bottoms are all very similar in that they are a bottom formation that will be a foundation for a market rally up.

I try to get all the details correct (splitting hairs), but at the end of the day, they all support a very similar result. That being said, July Beans marked a lower low today with a Doji, and instead of forming an inverted head & shoulders and the formation is a broadening bottom.

Therefore, the low prices of late should be a low for a rally to happen. Nothing occurs in a vacuum, therefore the bulls have more confidence because of the strength that soymeal is displaying. Tomorrow is a wildcard, however, with the monthly crop production report coming out, so everything is taken with a grain of salt.

July Soybeans traded down to within 6 ticks of the March 23rd low of 1383.75 and then rallied up to close at 1407. The current pattern is a broadening bottom (expanding triangle) that is formed because the bears and the bulls become more forceful and frantic pushing their agenda - you can see this because each successive leg is longer.

Also, the neckline is still valid for a breakout point. 1380 to 1385 should continue to be supportive. Here is the current bean chart.

July Wheat is taking it's time fleshing out the right shoulder of the inverted head & shoulders. Today, wheat marked a triple low at the right shoulder area. Today's low trade is also a couple of cents from the left shoulder low - a very balanced looking pattern - markets love symmetry.

625 to 627 should be good support, but with tomorrow's report, anything can happen. Check out today's July wheat chart.

Today we're taking a look at the daily corn continuation to remind about the bigger picture. The July 22nd 2022 low is 561.75, so it is possible for support to be tested there. However, July Corn has not printed a new low since May 3rd, so 578 should function as support tomorrow.

Again, with the wildcard being played tomorrow, confidence is scattered. The main point is that corn is trying to form a bottom that marks a big double bottom from last July 22nd's low. You will see it on the current corn chart.


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