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Tech Guy Opening Calls & Comments 9/27/23

Dec Wheat - Steady to 1 Higher


Dec Corn - Steady


Nov Beans - Steady to 1 Higher


Apologize for the typo yesterday in the December Corn comments. Support was 476, not 496. The bulls continued to gather steam in corn today closing at 484.75, up +5 cents - this is directly at one the resistance/pivot levels.


The next objective tomorrow will be 490, and support is now 480. It sure is congested because of all the bumps/pivots to the left, but the main point is that it's increasing in price, rising up out of the base.


Once December Corn clears 490 (when this becomes support), it will have smoother sailing to the upside. Check out today's 2 hour chart.


November Soybeans backfilled some on the open last night and then found buyers in the 1498-1497.5 area, as anticipated. The next move took beans up to the neckline (1313) overnight and prices backed of some to mark a higher low.


The day session was more volatile. I forgot about the old uptrend line that provided resistance today - you'll see this labeled as "this line" on the chart. I don't know if beans will mark a new high tomorrow.


Therefore, resistance will be today's high at 1317 and support will stand around 1300. There is a lot of price jockeying happening by the funds before Friday's stocks report. Here is today's updated November bean 1 hour chart.


Today's corn and bean charts are good examples of how price responds to previous market action as defined by lines. We have to draw the lines as a roadmap. Here is an article about trendlines from investopedia.


November Crude Oil finally made it to our upper price target today, trading up +3.31 to 93.70, after backfilling the previous 4-5 days. This is a fairly major pivot/resistance point on the crude chart, therefore the likelihood of some pulling back from today's high is good.


More evidence of the 93.50 area bringing out a bunch of sellers in today's session was an intraday volume spike. We have to widen the range of possibilities now that crude has reached a major objective.


While the next move is more likely down in crude oil, it could trade to 97.66 first, if demand is too strong. Support is 88-87. Check out the 4 hour crude chart that shows the huge amount of volume at the bottom of the chart, followed with the daily.



Live Cattle Update:


I don't know for sure if the cattle chart has finally run it's course and topped out, but this is a possibility. This 7-8 day topping pattern is called a 1-2-3 potential top - one of the first books on commodities I ever read. The price marks a high, then sells off, then rallies again, marking a lower high, then selling again to mark a lower low.


If prices can't rebound above 190 on a closing basis soon, then we will look for further downside. The 2 lower blue trendlines are potential support. Here is the December daily cattle chart.


This is the weekly cattle chart showing the 2014 old high - this level is assuredly going to provide at least short term support - a bounce. Whether prices can forge to new highs after testing this support, we will find out later.



Weekly support comes in about 171.5 +/- 2.0 Take a look at weekly live cattle going back to 2014.





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