March Wheat - 4 to 5 Higher
March Corn - Steady
Jan Beans - Steady to 1 Lower
March Wheat continued selling off to test the August 18th low of 725.75, by marking a slightly lower low of 723.50 today. The fund buyers showed up to rally wheat about 7 cents off the low, for a close at 730.75.
We have to believe March Wheat is marking a double bottom today. I'm looking for some follow through buying tomorrow. Below is the updated March Wheat 8 hour chart depicting the double bottom.
It is a positive sign that March Corn did not sell off to the 631 Corn continuation gap in the face of all the other markets slumping, including crude. There is a triangle that March Corn sold down from on Dec 1st - last Thursday.
The width of the triangle is 23.5 cents. To find the bottom target you take the point where corn broke down from the triangle and subtract 23.5 cents. This gives you 638.5, which March Corn tested thoroughly - yesterday and today. I think the selling is complete. Take a look at this triangle and its target. You can even estimate using your fingers to measure the width of the triangle, then drop down below the triangle and do the same thing.
January Soybeans was again caught in the middle of bean oil and bean meal for today's trade. Jan Meal was up over +17.00 to 449.2 while Jan Bean Oil was down -0.82 to 61.75.
As a consequence of it's products, Jan Beans rallied 32.5 cents on the high, then sold off the high at 1472.50 down about 16 cents to close near 1456.50. Support for Jan Beans is 1419 and resistance is 1478.
Jan Meal closed within about 10 dollars of it's first upside target which is about 459. What I think is the most likely scenario is for Jan Meal to trade close to 459 tomorrow, then correct/backfill down to 440 - 435 during this week.
I'm hoping that bean oil will reach a bottom by the end of the week. At this point, the plan is for Jan Soybeans and both it's products to be on the same page and be able to rally together. Check out the impressive Jan Soymeal chart below.
Jan Crude Oil Update: forget the inverted head & shoulders, crude had a different plan in mind - selling off to stop out all remaining new longs from the last 2 weeks. The new pattern which has evolved is called a broadening bottom - it has 5 legs, 3 lower points and 2 higher points, with each low being lower and each high being higher.
The goal of this pattern is to kick out as many longs and shorts from the market as possible. All the buyers and sellers get whipped around so much, they both give up so that the professional buyers can step in and take over.
Also, this area between 70 and 80 bucks in Crude Oil is a major pivot point and support on the long term charts - weekly and monthly. All the traders who survived this whipping will be rewarded with a nice rally well above 84 and eventually back to 94. Please see this newly emerged pattern below.