Tech Guy Opening Calls & Comments 3/9/23
May Wheat - Steady to 1 Lower
May Corn - 1 Higher
May Beans - Steady to 1 Lower
The March 1st swing low in May Corn at 622.25 did not hold today because sometimes markets test or overshoot areas where the volume says it should be a solid low. I have no doubt the funds were buying hand over fist below 622. As you will see on the 8 hour corn chart we have a big A-B-C correction where A is 75 cents in length.
Today's low at 610 is 75 cents from the top of B at 685, so today (C) should be the bottom because swing measure (where 2 legs have equal length) targets are often the objectives of markets.
Below 610, is the top of the gap below at 599.5, but I do not think May Corn will trade to 600 or below, much less take out last July's lows. I believe that summertime breakaway gap will stay open at 599, and I do not think price will stay below the swing low at 622.25 any longer than a couple of more trade days.
Check out the 8 hour chart showing the A-B-C correction with down legs of equal length.
I do not know where the bottom of the wheat market is - this market is in the very oversold category. As you will see on the May Wheat weekly chart the next bump/low on the left is 647.25, about 18 cents from today's close.
I believe May Soybeans completed it's 1 hour, double 3 correction. It's made up of 2 A-B-C's connected by an up X wave. The Big 3 up leg should begin tonight and tomorrow. This morning's low of 1505.50 is within 2 cents of the 62% retracement and should be the low of the correction.