March Wheat - Steady
March Corn - 1 to 2 Lower
March Beans - Steady to 1 Lower
So far, so good. March Wheat and Corn had nice follow through buying in today's trading session after yesterday's bloodbath. This is absolutely what you want to see when expecting a correction to be over.
Both March Corn and Wheat managed double digit gains today, with corn up +11 to 677.25 and wheat up +13.50 to 733.50. Also March Corn closed higher than yesterday's high.
Corn bought back up to the high of the left neckline which is at 677. You will see this high marked on the chart with, "this high today" on the upper left of the chart. Support is now at 669.5 and the next resistance up is the June 1st low at 687.26.
Another feature of today's corn action was that the move up is just past the 50% level of the down correction. Financial markets like to respond to certain Fibonacci levels depending on the context of the chart. Here is a slightly zoomed in picture of the updated March Corn chart.
December Corn tested the bottom of the triangle (which is support) line yesterday and reversed higher with the other markets.
There is another detail on the bottoming pattern of the March Wheat chart that has not been discussed. Since the first low on January 10th, wheat screamed upwards 20 cents or more, 4 different times on spike lows, including today.
This tells us that March Wheat does not like prices much below 725 because demand really spikes below that level. This was another argument that wheat was bottoming out gearing up for a rally.
After the markup in wheat price today, it found support on the lower trendline that it fell through yesterday where a red arrow is. Support is about 728 and the next target higher is the trendline at 767. Check out today's March Wheat chart.
The first order of business when you are looking for an exhaustion gap is for that gap to be filled quickly (1-3 days). March Soybeans got it done today and then corrected down about 65%. As long as beans don't make a new low, or if they do and strong buyers arrive, the exhaustion gap is golden.
Support in March Beans is now 1488-86 and the next up target is between 1521-27.
Here is today's bean chart.
Look at the updated new crop soybean chart. Price almost made it down to the 2020 uptrend line yesterday, but it scared traders before price could get there.
There are 3 different types of Dojis (that I know of). The most common is where the open/close are the same and are located anywhere on the bar (middle, upper third, etc.). The other 2 are more specific: Dragonfly Doji and Gravestone.
A Gravestone Doji occurs after an up move (open/close are at the bottom of the bar) and the Dragonfly manifests after a sell off has occurred - in this case the open/close ticks are located at the top of the daily bar.
They are both a stronger indicator that a market turn is imminent than a run of the mill Doji. Yesterday, the March Soymeal marked a Dragonfly, indicating that the traders were not comfortable with price hanging out near the lows.
It is a good signal that meal wants to mark prices higher. On Friday meal sold down below that support/resistance line which has recently become an equilibrium line. Then today that same line worked as resistance. Support should now be 457 and the next resistance will be 481. Check out the March/continuation meal chart.
March Crude Oil sold off a couple bucks today and finished right near the top of the neckline, which should continue to hold up price.