March Wheat -
Dec Corn -
Jan Beans -
The January Soybean contract marked an outside/higher bar on the daily chart today! This means that the lows were lower than Friday, yet we closed higher than Friday's high - a bullish development in and of itself. Check out the updated daily bean chart showing today's development.
From last weekend's bean comments: "Jan Bean chart that the apex of the triangle is closing fast and I expect to see some upside action for the upcoming week" January Beans also broke out of the top side of the big triangle today, closing right near the high at 1456.50 - up +20.25.
We want to see follow through buying tomorrow and this week in general to support the idea of this triangle breakout, and I believe there is a good chance for this. Below is the updated Jan Bean 8 hour chart showing today's breakout and big triangle, along with Elliot wave counting - 1, a-b-c (2), 3 projection.
After also opening lower last night, Dec Corn managed to finish the trading day with a small gain - up +.75 at 668.75. I am still anticipating a close above the June 1st low ow 682 this week to confirm an upside rally. See today's Dec Corn chart right here.
The fund liquidity rolled to March Wheat today so this is the contract we'll follow. This means that the majority of the short and long term traders got out of the December contract and got into March 23.
Wheat might have to sell down to the August 18th low of 760.25 for a good test of this area, about 20 cents lower, before the fund buyers show up again. The technical setup would then be a double bottom. Wheat is assuredly the weakest link in the grain complex at this time. Here is the March Wheat chart showing the double bottom developing.
Jan Crude Update: The sellers needed to test and take out last Monday's low today in order to clean house even more. However, crude managed to close above last Monday's low and Friday's low, then closed positive on the day after testing much lower prices. I need to see follow through buying tomorrow.
Like I said, very strong buyers were entering last Monday, but they have had to withstand the last 3 trading days. I think tomorrow closes higher again. Here is a fresh perspective - the Jan Crude chart by itself