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Tech Guy Opening Calls & Comments 5/31/23

July Wheat - Steady to 1 Lower

July Corn - Steady to mixed

July Beans - 1 to 2 Lower

July Soybeans appeared to have finished the down correction this morning. The overnight market sold off to almost 1270, closed at 1272.25. When the pit/day session began at 8:30 CDT, the bulls gapped up price almost 2 pennies.

This is an intraday gap, not as powerful as a daily breakaway gap, but it is not meaningless - the bulls never looked back after the open. The low this morning was within a few cents of where I talked about this down leg ending, on the May 21st July Soybean comments.

Remember, we dug into the anatomy of the C - leg down impulse, breaking it down into it's 5 wave/leg component parts. The first down leg was 89 cents and the 3rd wave/2nd down leg was 61.

I had stated that the last leg down would be in between these 2 figures and therefore our target low would be between 1273 and 1278. The last leg of an impulse is usually smaller than wave 3 yet longer than the wave 1.

The funds engineer price to get the energy needed for a sustained rally to begin.

A lot of market participants got long in the range between 1305 and 1344 and many of those contracts were sell stopped out during the last 2 days. This gives the fund bulls a chance to buy more contracts on the way down, and thus gathering more energy.

Today also painted a Doji in July Soybeans where the open and close are very close. This fact adds to the confidence that the sellers should have exhausted themselves.

I have re-mapped a possible price action course on the July Bean 4 hour chart. The blue down bars are where I expect small down corrections to begin. You will be able to study this better if you're can print these charts onto paper, so there is not so much having to go back and fort between the text and chart.

Tonight and tomorrow's support should be in the 1287 to 1285 price range and the first target higher is about 1331. Check out the bean chart. We will have to see what the first leg looks like to get a better idea about timeframes.

July Wheat also marked a sharp down and then up day. Price as still hanging out in the weekly balance area that I pointed out yesterday. However, my confidence with wheat is still pretty low - a seemingly never ending sell off.

Therefore, we'll have to see if the wheat bulls can continue to bid up the price. See what you think about the 8 hour July Wheat chart.

July Corn sold off/corrected to just below the 580 level mentioned yesterday. Whether corn marks another down leg from today's high or rallies up past the 608 level first will tell us what we need to know about the strength in July Corn.

Lower support would be about 573 to 574 for corn and first resistance is 613 followed by 647. Here is today's daily July Corn chart.


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