March Wheat - Steady
March Corn - Steady
March Beans - 1 to 2 Higher
March Soybean Meal backfilled today and found some buying support a few ticks above Friday's close which was 490.80. This is the area we discussed yesterday and should provide buying support. If sellers are able to overcome in here, the blue uptrend line below in the 485 - 486 area will provide another backstop.
Gaps of this nature usually provide solid buying support for rallies to continue because the gap up is a statement of buying urgency and funds will want to defend this area. Here is a zoomed in 1 hour March Meal chart so you can see the details of the 2 legged a-b-c correction since Sunday night and exactly where the close was on Friday.
Take a look at the 1 hour March Soybean chart showing how the market hugged the lower uptrend line last week, gapped up on Sunday night, and then today found buying support in the middle of the gap today.
This afternoon, beans marked a higher low from the morning lows. Now, we are either looking for 1 more selling attempt to close the gap where the red line is or simply more buying which challenges last night's high. The upper short red line (gap fill) is where more buyers are lurking.
March Wheat needed to fill out the right shoulder more than I anticipated - markets like to have as much balance and symmetry as possible. As I mentioned earlier, I didn't feel good about the 760 area not holding from last Friday.
In the end, wheat is forming a larger inverted head and shoulders, where the shoulders and head are labeled with an S and H.
This will be a few weeks in the making but the buy target is 884. This price is derived by adding the length of the buy leg on to the neckline. As you already know, markets have to clean out as many longs as possible to gain energy for further rallying. Here is today's updated wheat chart.
March Corn also had a backfill day which tested the main uptrend line of the ascending triangle. This area is also where last Thursday's low was printed at the 673.50 level. I expect this price to hold with good buying support. You will see it on the 4 hour updated March Corn chart.
The never ending correction in April Crude Oil is likely to test the 72.00 - 72.30 level where buyers must be waiting because they did not succeed at the 75.50 - 76.00 level. Here is the updated April Crude chart.
