Tech Guy Opening Calls & Comments 2/28/23
May Wheat - 1 to 2 Higher
May Corn - Steady to Mixed
May Beans - Steady to 2 Lower
The lower support line in May Wheat held prices up today which is a good sign for the bulls. The low for today and for the move of 702.50 was printed just after the opening bell and the bears were unable to test this price the rest of the session - close of 707.
The selloff in beans and corn happening caught a lot of folks, including myself, off guard. Sometimes, the factors surrounding the rolling of March contracts to May can contribute to selling. This selling, however, is being stored as bullish energy for a run up in price, ultimately.
Either way, May corn on the continuation chart, successfully closed that old gap from August of last year - business complete. I found a balance line which comes in tomorrow around the 623-622 level which should provide some stopping volume by the bulls.
The lower channel line from the uptrend since July 2022 comes in about 1475-1474 in the continuation soybeans tomorrow. Let's see if this level brings in "stopping" buying volume tomorrow. Stopping volume simply means enough fund volume to stop the current move and try to reverse it.
As expected, April Crude Oil broke upwards from the small triangle today. After that it tested first resistance and settled on the top of the triangle. Today's resistance level could be the start of a new down leg if the triangle doesn't hold prices, or a rough midpoint up to 79.50.
Tonight's action should give us a clue to this dilemma. You will see what I'm saying on today's chart. Crude Oil has been trading in a range between 72 - 82 since about December 13th. Until it breaks out up or down above these levels, we should expect more back and forth trade.