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Tech Guy Opening Calls & Comments 1/5/22

March Wheat - Steady to 1 Higher

March Corn - 1 Higher

March Beans - Steady

My function is to find evidence in the charts that supports what I think I'm seeing. Found a lot of it today.

From yesterday's wheat comments - "The low of 2 bars back is 738.75. The low/close of the bar before the exhaustion gap is 737.25 - these price levels are solid weekly support and the next leg up should begin from 737-745." The sellers found this support today where fund buyers awaited. After the sharp spike low at 736 on peak volume wheat rallied up a full dime to close at 746.75.

Interesting intraday volume action in March Wheat today. The 3rd 15 minute bar of the session had the most volume today on the low. Normally, the opening bar trades the most volume - when the volume peaks in this fashion, we have maximum confidence that the 736 low will hold.

In addition, the Daily March Wheat chart painted a day bar Doji which is the open and close very close to one another. When a Doji bar occurs where there is good support, it increases the confidence even more that price will not trade any lower. In fact there is some degree of likelihood that tomorrow price will try to rally the entire length of the yesterday's session which began selling from the 770 level.

March Corn endured a little bit more selling today, as well, but managed to close almost 6 cents above the low while also marking a daily Doji bar. This bodes well for an up day tomorrow. The March Corn volume also peaked on the 3rd 15 minute bar on the low price - we know what this means. Here is today's corn daily continuation chart.

March Soybeans didn't want to be left out of the selling spree and finished down about a dime on the day. Price found another trendline for support today, which is only apparent on the soybean continuation chart and is the big up trendline from the 2020 lows that comes in around 1469, 4 cents from the low print. Fund buying ensued around the lows and beans rallied 9 cents above the low to close at 1474.

Overall in the grains today I think the corrective selling has capitulated/exhausted itself. I am looking for an up day tomorrow.

February Crude Oil attempted lower prices today, but this was met with brisk buying and oil managed a close that was up +$1.09. This means the inverted head & shoulders pattern is what we should be looking at for guidance.

It tells us that we have another target to the upside, up +$12.75 from where price goes through the neckline. This equals roughly $94.00. Interestingly, the new 94 objective is also where an old resistance line sits. Time to begin accumulating. You will see what I mean on the Feb Crude chart.


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