Tech Guy Opening Calls & Comments 11/14/22
Dec Wheat - Steady to 1 Lower
Dec Corn - Steady
Jan Beans - 1 to 2 Lower
The support between 652 and 654 held nicely today in Dec Corn. The sellers were met with solid fund buying in the overnight market and on the pit open causing price to rally from 652-653 up to the high of 662 - the last trade was 657.25 causing the daily bar to paint an almost perfect Doji with last night's open being 657.
To review what a Doji tells us farmers and traders - The trade is back and forth a few times during the day with solid support and solid resistance. The market is in a state of indecision, the bulls and bears are in a tie - nobody is winning. When the Doji occurs on a swing high or low, like in Dec Corn, it is usually a good sign that the tides are turning up in our case with Corn.
When Dec Corn trades up above 682 again we will have a lot of assurance that this little sell off of late was indeed a fakeout to push out as many weak longs as possible.
Check out the Doji in Dec Corn on today's bar.
Dec Wheat also found some buyers today closing up +4.75 to 818.50.
January Soybeans faded back to close at 1442, 8.00 lower. This pullback equals about 62% down (common Fibonacci number) from last Thursday's rally. The daily Jan Soybeans chart is forming a huge, somewhat equilateral triangle, beginning in June for the top line and July for the lower line - both lines are close to the same steepness. It should be breaking higher pretty soon! Here is the daily Jan Bean chart - notice the triangle.
Dec Crude Update: It looks like the 90 area was more formable resistance than I anticipated. So what we have now is rangebound trade, and tomorrow could see selling between 84-83 where the fund bulls should take over. Then I expect a run back up to 89.
Today's high in the Dec S&P was 4017 which is very close to the upside down head & shoulders target. This market should correct or go sideways for a bit before going higher. Support should be near the 3926 level which is the old swing high from November 1st. Please see today's S&P 1 hour chart - it is a blowup of the 4 hr charts that I had previously displayed.