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Tech Guy Opening Calls & Comments 4/10/23

May KC Wheat - 2 to 3 Higher

May Chi Wheat - 1.50 Higher

May Corn - 1 Lower

May Beans - Steady to 1 Lower

May Kansas City Wheat marked a strong up day today, trading up +12 cents to close at 876.50. I see a lopsided double bottom forming, also known as a W bottom because the pattern resembles the letter W.

The first thing the pattern indicates is that a fairly long term low should be in place. We can also derive a price projection higher, based on the distance from the top of the W down to the middle of the trendline running across the low prices (bottom), which is 138 cents in length.

The top of the double bottom is 921.50 (rounded to 922), and the low price which is in the middle (left & right) of the lows is about 784. When you add the 138 cent length to the breakout point/price, you get the price target of 1060.

These W patterns are remarkably reliable at achieving there target, whereas the time it takes to unfold is not as precise. I would give it several weeks to 3 months. Check out the May KC Wheat daily chart below. Everything mentioned here in the comments is labeled on the chart.

May Corn was flirting with the lower support level of 638 early in the session today, then the fund buying kicked in before 638 could be achieved by the sellers. By the end of the day, corn had rallied to close more than 10 cents higher on the day.

In fact, corn traded back above the first support level at 638. The next objective is a test of the swing high at 668. You will see all of this information on today's May Corn 4 hour chart.

May, July and December corn also marked key reversal day's higher today on the daily charts - by trading lower a few cents, then reversing higher to close above the last 3 day's closes. Key reversals are usually good indicators of a trend change - in corn here, a signal of the end of a correction Here is another look at the new crop corn daily.

November Soybeans gained about 5 cents on the May contract possibly signaling that the traders were more concerned about planting than this years ending stocks, at least for today.

May Soybeans continued to flesh out what looks like a right shoulder of an inverted head and shoulders pattern on the 4 hour chart. What was support at 1498, became resistance today.

The left shoulder is lower support at 1478, but the traders were unable to sell down there. Let's see if you can spot the upside down head & shoulders pattern. I have purposefully not labeled the price points. Here is the updated May Bean chart.

May Crude Oil continues to trade in a tight channel between 79.60 and 81.25. 78 is still support below if the sellers become aggressive. 89.40 continues to be the measuring gap target up above.

To obtain the target, you add the length of the leg up to the bottom of the gap, which is 11.40, to the top of the gap's price - 79.00. Check out the 8 hour crude chart noting the bottom of the small channel marked with a small red line.

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