Tech Guy Comments for 10/20/22
No opening calls due to family obligation tonight.
All the grains came back alive today with Dec Wheat closing just underneath the 855 neckline at 851 - the funds are stocking up on longs down here and once we get a close above 856 the trend should be up.
Dec Corn last traded at 683.75, up +5.50 and just above the all important pivot point - 682 - the June 1st low. Support is 674 for tomorrow and resistance is 700.
The Soybean complex was the strongest in the bunch today with Dec Soybean Meal being up + 11.00 to 412.70 and Nov Soybeans closing up +18.50 to 1391. Remember, on the weekly charts, Beans and meal are in solid uptrends and have been trading sideways since July just burning up time and building up the energy supply.
The Dec Meal contract has some resistance at the 430-445 level, about $16.00 higher from today's close. Here is the Daily Dec Meal chart with support and resistance lines labeled.
The weekly Soybean Meal is very interesting now that I have studied it again. There is a balance or target line (red) that goes up and to the right on the chart. It shows a possible/probable price target of 700 by June 2023. I know nothing about the fundamental situation of bean meal, I just draw lines and count.
On the weekly chart you can plainly see the succession of higher lows and highs starting from early 2016 till now - this is a slight uptrend - bullish long term.
Here is the meal weekly chart.
I will talk about the weekly Cotton chart this weekend and what it is projecting. Here is a hint - if I was a cotton buyer I'd be accumulating between 78-75 where good monthly support comes in.