The cover image is of traders and brokers on the circular steps of the trading pit probably from the 1990's or early 2000's
Dec Wheat - Steady to 1 Higher
Dec Corn - Steady
Nov Beans - Steady to 1 Lower
From yesterday's December Corn comments:
"Support now should be 478-477 and resistance is from 482-484"
Today's high in December Corn was 483.50 and the low was 476.50. The high print was 1 tick above last weeks high as you will see on the chart depicted with a short red line running across last week's high.
The fact that corn accomplished both a higher high and low is support for the bull story - the chart is attempting to climb out of the base. The most likely scenario for tomorrow's trade is for the bulls to push for higher high's again, above 485 and shooting for 490.
December Corn's market action today looks like an a-b-c correction, therefore the next logical step would be higher highs. Another argument for further upside action is the volume on the trade ladder to the right.
To explain, the bulk of the trading volume was near the low of the day at the a - point, between 479 and 480 - this is the fund bulls defending and adding to their long position. If the peak volume was between say 482 and 483, closer to the top of the range, we probably would be looking for lower lows tomorrow.
This is the same concept we were considering last week, the first day we were looking for the 473.50 area to hold support. The volume spiked that day between 474 and 475.25 confirming the validity of that support at the bottom part of the trading range.
Have a look at today's 2 hour corn chart once again. Support is 496.
November Soybeans are constructing a small inverted head & shoulders formation with the right shoulder above the left - this aspect is more bullish than if the right shoulder were even, or below the left shoulder.
As in corn, this bean pattern is an added trading day of confirmation that yesterday's swing low should not be challenged or eclipsed. The target price higher is about 1332, 5 cents above the first resistance point mentioned yesterday of 1327. Actually, first resistance now is 1311-1312, the neckline.
To be clear about the name of this pattern - Unfortunately, the head & shoulders pattern is not humanly anatomically correct. The neckline is below the base of the neck on the chart, instead of where it should be.
Maybe they should of called it the waistline instead. I found this explanation of the neckline on investopedia.
Take a look at the 1 hour November Bean chart, featuring the bottoming pattern. Support is 1298
December KC Wheat should have found a good bottom, as well. It has also formed a small inverted head & shoulders pattern which is in the vicinity of where we thought a solid low should form, last week.
This bottoming formation should thrust prices up towards 737-738, which is the top of the current trading channel. See if you can spot the neckline on the 2 hour continuation KC Wheat chart.
The November Crude Oil, indeed sold off sharply to test 88.37, then rallied sharply back up to the 90.50 level during today's trading session. This was a higher close by .86 cents. We will take a look at crude again tomorrow.