Tech Guy Grains Analysis 2/20/26

I expected consolidation and corrective action in May soybeans this week, but we only saw sideways consolidation - no selling to test 1120, as I thought. Apparently the bulls are firmly in control, with the week being capped off with an exclamation point on today's price action. A strong selloff was met with a rejection by the bulls as they bought every contract the sellers offered plus more.

Staying with the Elliot wave lessen, corrective number 4 should be complete, paving the way for a number 5 impulse higher. I count a double 3 sideways correction - this is an A-B-C-X-A-B-C. You could also count the wave as an A-B-C-D-E, but the result is the same, with 4 likely complete. You can count the individual legs between A and C to see what you think. The huge volume on the violent selloff today shows the capitulation. Here is the May bean chart - notice the volume bar at the bottom.

The May corn upsloping channel and support were violated by a couple of cents, but corn still managed to print a higher low by a couple of ticks. You could call it a fake out down to stop out more week longs. 434.25 was the low for the week - this level should hold and the direction should still be higher overall, with near-term targets at 444.0 and 448.0.

After failing to test support by 2.0 cents, May SRW Wheat put on a very bullish show for the week, closing about 26.0 cents higher for the weekly bar. Upside targets are 586.0 and 610.0.

There are no descendants of George Washington because, when he had mumps as a youngster, he refused to stay in his bed and be physically inactive as the doctor ordered. The mumps “went down on him” and made him sterile. Maybe that was a good thing. Can you imagine everyone knowing you are the great, great, great, great grandchild of George Washington?

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