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Tech Guy Opening Calls & Comments 5/9/23

July Wheat - Steady to 1 Higher


July Corn - Steady


July Beans - Steady to 1 Higher


July Wheat sold off just a couple cents below the 635 support today, then rebounded back up over a dime. Because of this rally from the lows, it looks like a nice inverted (pointing up) head & shoulders is forming.


The shoulders are marked with big S's and the head is labeled. The neckline is the blue line running across the most recent highs and because it is angled upward to the right, it is more bullish than if the line was flat or angled down.


Therefore, July Wheat marked a strong key reversal up last week and has now completed the formation of a bullish head & shoulders pattern with a target of +60 cents from where price next touches the neckline. This is a high probability target because of the 2 factors pointing up.


Let's say wheat rallies up to the neckline at a price of 673. The target is 673 + 60 cents which = 733. Check out the 4 hour July wheat chart. I believe you will be able to see what we are talking about.

July Corn failed to hold the neckline support at 590 today and we had an intraday gap down on this mornings pit session open. It measures about 12 cents from 600 down to the top of the gap.


This indicates that we must be open to the possibility that corn will sell off 12 more cents from the top of the gap - this would equal 575 and today's low was 581. However, because July Corn has marked 2 down legs of near equal length, today's low might be the end of the correction.


It is hard to say which scenario is the higher probability course. We could say that because July Wheat is showing more strength, it may help support corn's 581 low. We have to wait and see tonight and tomorrow's trade for the final answer.


See what you think the 1 hour corn chart looks like, then we have have more answers later.


Even though July Soybeans also fell through support, it marked 2 equal legs down and therefore the correction may be over at today's lows at 1410.50. A clue as to why beans traded between 1417 and 1410.50 today, are some price bars to the left which are highlighted with grey ovals and a blue line running across some price bars to the left (marked "this line").


I have labeled the corrective legs with 1-2-3 where 1 and 3 are the down legs. Take a look on the 2 hour July bean chart.


The continuation (July) Soybean Meal chart looks like it wants to complete the big A-B-C correction that's been going on since February 13th. At the bottom of "C" (highlighted with a grey oval) there looks to be a triple low trying to form, where tomorrow would be the final low. Let's see. Check out the meal chart.




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