Sep Wheat - 1 to 2 Lower
Dec Corn - Steady to 1 Lower
Nov Beans - Steady
December Corn attracted the fund buyers today and they managed a small rally of +4.50 to close at 499. Today's daily bar was also an inside day which was also the narrowest range of at least the previous 7 days.
It represents the culmination of a few energy building days with a narrow day at the end. Small range day's are a function of indecision or a battle between the bulls and bears where no-one is the victor.
Swing traders use these setups to go long or short the next day, depending on whether price breaks upward or down. I bet you can guess here in December Corn I am expecting a breakout to the upside.
The bears may initially test the low of today at 494.50 first, but the close tomorrow should be in the positive. I remember when a 9 cent range in corn was a volatile day - tells you about the times we are in.
Also, this inside day expectation of a break higher is congruent with the weekly Doji bar from last week that was talked about yesterday. It's like 2 or more pieces of evidence that point to the same perpetrator - in this case the bulls should be guilty.
It's a good thing when the weekly and daily chart are aligned. Check out today's December corn's daily, inside bar - labeled ID/NR 7.
The December Soybean Oil daily chart is an interesting one as far as support and resistance. It is also in a firm up trend. Lately bean oil has been rotating/correcting around the 1st resistance level and it appears to be ready for another leg higher to test the next resistance above.
Bean oil closed at 60.76 today just above resistance and the next stop should be in the 65.50 area where another downtrend line meets price. Later on, 78.50 (old swing high to the left) should be in the cards. I also noticed, soybean oil seems to be leading soybeans more than soymeal is.
Here is today's continuation (now December) soybean oil chart.
August Soybeans appears to have completed the correction #2 on Friday, and begun #3 up impulse today. This new impulse should test the high around 1500 soon. Check out he updated August bean 4 hour chart.
Now, we are going to look at our old friend, the soybean continuation chart. This is the chart that comprises the weekly chart. Many commodity software programs roll on FN day or contract expiration from July to August. Mine rolls beans from July to November and corn from July to December.
They all have to be considered when trying to navigate the continuation daily and weekly chart. I have found the July to August bean roll to be a better chart. I am going to ask you to imagine August bean price above 1525 and 1550 and 1583. Notice the void of bumps on the left.
If August beans rally to these areas, the higher price goes, there's less resistance. The gap at 1585 was already closed by the July bean contract (business completed), so next time price trades above 1583, the air is pure or thin, depending on which way you want to look at it.
Something to keep in mind as we embark on what should be a volatile week. Here's the bean continuation chart.
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