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Tech Guy Opening Calls & Comments 5/2/23

July Wheat - Steady to 2 Higher


July Corn - Steady to mixed


July Beans - 1 to 2 Lower


We are going to dig into some details of the charts today - what causes support and resistance and how the left side of the chart affects the right side (current prices).


From yesterday's July Bean comments about support: "Support for July Beans is 1413." As I have mentioned, markets will sometimes turn directly on support levels or they may overshoot or undershoot them.


July Soybeans found a bump on the left around 1439 to get the bears going and then they sold all the way down to the support level at 1413 while overshooting it by a nickel. You should be able to see these features on the 1 hour July Bean chart.


July Beans also formed an inverted head & shoulders on the 1 hour chart today (guy standing on his head). It points up. The right neckline is higher than the left - this is more bullish than a flat or lower right neckline.


The upside target for the inverted H&S will be 39 cents added on to where price breaks north of the neckline on the right - in the 1485 area. We shouldn't trade any lower than today's low of 1408. However, if the sellers push too much, the 1396 area could be re-tested - the less likely scenario. Check out the 1 hour bean chart.


While July Corn is fleshing out it's spike and ledge pattern by marking a slightly higher high and low on to the ledge today, the December contract is trying to base/bottom out in what's called a broadening pattern - 5 points up and down beginning with a low and ending with a low.


This formation is caused by the dying battle between the bears and the bulls playing tug o war. The 5 points are marked with an upper and lower blue line running across the swing points. The low today was printed at 518 and there should not be any lower prices from here +/- 2 pennies.


From yesterday: "Support for Dec Corn is 518." Here is the 30 minute December Corn chart featuring the broadening bottom pattern.


From yesterday's July Corn comment: "Check out the 2 hour July Corn chart, noting the spike and ledge bottom pattern - support is 576".


Here is today's chart. It almost looks the same with the ledge part of the structure marking 2 more points.


July Wheat continued to sell off today, testing the July 9th, 2021 low of 609.50. Price overshot the level by 2 cents, marking a low of 607.50. If the fund buyers can buy price above the lower down sloping blue line, a low may finally be in place. You will see this line on the 30 min wheat chart.


Remember we are looking for a confirmation that feeder and live cattle have topped out on the daily and weekly charts. August feeder cattle sold off sharply today - about 4 bucks, and looks like the top is in place at 232.225. Today ended at 226.075.


Resistance on August feeders is now near the 228 level - a good place to hedge.


June Live Cattle also sold off sharply today and the chart appears to be marking a topping pattern. Check out the June Live chart with arrows and notes.



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