Tech Guy Opening Calls & Comments 6/2/22
July Wheat - 2 to 4 Higher
July Corn - 2 to 3 Higher
Dec Corn - 1 to 2 Lower
July Soybeans - Steady to 2 Higher
From yesterday's comments: "If July Soybeans can clear the 1706 area and hold for a couple of hours, I will have confidence that beans can make a run back to 1730 area."
July Soybeans showed it's strength today rallying above 1706 like someone had knocked the stop sign down. It did not even pause there - went straight up and closed at the resistance level of an upper trendline drawn across the highs of this 3 month range that July Soybeans have been trading ( 1730).
I am expecting 1723 to hold below and an eventual attempt higher to last Thursday's swing high of 1749.25
You will also notice on the chart below that July Soybeans have traded straight up, straight down and now again back straight up. There were no bumps or pauses in price/chart to create any resistance or support along the way. The first run up last Thursday caused the clean selloff on Tuesday and the selloff created the clean run up today.
I don't know how else to describe it. Hopefully you can begin to see it on the chart below - if I could sit down next to you looking at the chart I could show you. The red horizontal lines should help. Look at the consolidation areas (sideways) left and right where the red lines are drawn. Consolidation literally means a gathering of data in one place/back and forth..
Also notice the uptrend line drawn near lower part of chart and see how price dipped below, then stopped/reversed on high volume then rallied back above that line.
July Corn and Wheat held their lows as anticipated while the bears figure out if they have any energy remaining - if they can fight any longer.
July Crude Oil Update: The 112 area held support for the most part except for 1 swift down move to 111.2 then it reversed up and rallied to the 117.80 area. From yesterday: "support from 113.75-112.50, It should move up to the 118.50-120" - almost.
Look for some consolidation (back and forth) price action between 116-119.50 before most likely working higher despite the supply beefing efforts occurring.