Tech Guy Opening Calls & Comments 12/29/22
March Wheat - Steady
March Corn - Mixed to 1 Lower
March Beans - Mixed to 3 Lower
March Wheat corrected down about 11 cents today, but the sellers could not touch the uptrend line. We will see if it tests this line tomorrow, but if it can't, this is more bullish. Further, the action today means that the fund buyers are too eager and could not wait a few cents down to buy.
This is called frontrunning - leaving weaker bulls below to miss out on the action. Nothing else has changed today - March Wheat needs a close above that line still so that it can run up higher. Here is a zoom in on the wheat chart.
March Corn went sideways and slightly down only a few cents today. Corn found support in the 678 level, where all those trendlines intersect on the chart. Is corn going to correct down more so that more buyers can enter the market with less risk, say around 665 where the next support line is? I don't know for sure.
Normally it would be reasonable to think March Corn would have a good correction after the almost 40 cent rally since December 19th. However, remember what I said about steady bull markets?..that they tend to not backfill a whole lot, leaving behind would be buyers.
Because March Soybeans has broken out of the ascending triangle, I don't think beans will correct below about the 1508 level. The price action has been steady up making higher highs and lows This is not conducive to large pullbacks.
March Corn has been stairstepping also. Also, I believe soybeans strength will help corn along since they have trended up together since December 19th. Using all this information I think the lows made today will hold support in March Corn, But because corn has run up so far, I am only 75% confident. My gut say's it will continue steady up. Here is the updated March Corn.
The logic is that something is driving the corn and bean markets and it must be S. American weather trending too dry, so unless something drastic changes it will keep on going up steadily.
March Soybeans had it's 2nd day in a row above the breakout and marked a higher high today. It should stay above 1508 level, especially on a close basis. Here is today's chart.
Be aware, there is a fair possibility that March Corn, Beans or Wheat (or all 3) could gap up Monday night or Tuesday. Markets can do drastic things after a long weekend. Figure out how that would affect your situation.
The 64.50 level is holding good support in March Soybean Oil. Here is a zoomed in chart of the support and target areas.
Feb Crude Oil made a small double bottom in the 77 area. Chart-wise the rally should resume here, but I have no idea which way the geopolitical situation will go.
Here's a zoom in on Crude.
The March S&P rallied up from 3800 area to the 3880 area and found resistance on the downtrend line. I am leaning towards it being able to have another up day tomorrow. Check it out.