Dec Corn - 5 to 6 Lower
Dec Wheat - Steady
Jan Beans - 1 to 2 Lower
Big jumps (gaps up) in Dec Wheat and Corn last night. My first question was, "are the gaps going to stay open?" No they did not. So we can't call them breakaway gaps in either Dec Corn or Dec Wheat.
Was this weekend's news and gap up enough of a spark to get Dec Wheat trending back up from the right shoulder? Most likely. Was the gap up in Dec Corn enough to start a trend up? Probably not yet.
Dec Corn needs to break out of the narrow sideways channel it's been trading in for 8 weeks to begin trending up again. Maybe this week. Let's see.
The next target up for Dec Wheat is about 940, about 60 cents higher - This is the new neckline. Also, the trading volume was tremendous in Dec Wheat today. The general rule of thumb is when you have a "leap up" from a trading range (in any market) with coinciding huge volume, it confirms the breakout up. You can see it all on the chart here - look at that volume bar at the bottom of the chart!
Dec Corn, on the other hand, is still stuck in the sideways (slightly up) channel it's been trading within for 8 weeks. However, I'm not saying it's not beginning an up move, it has just not been confirmed yet. A breakout up will be confirmed here when price shoots up and above the 711-712 level. Here is the updated Corn chart:
Dec Soybean Meal almost tested the chart high at 443.80 in today's trade. Once it breaks out to the upside this will also pull Jan Beans higher. I have a feeling it will be big news when Dec meal breaks up through the Resistance area labeled on the chart below. For now, the top of the triangle (labeled on chart) is support and 444.50 is resistance. Please look at the updated meal chart so you can see the upper resistance line - not too far above.
Jan Beans traded 18.25 higher to 1418.50 for today's trade. This chart is about to breakout higher from resistance at 1423, then next resistance is about 1485 here.
This Friday, Nov 4th marks the 35 (plus or minus 3-4 days) day cycle in Corn and Beans. Remember this has been fairly accurate on timing since the January time period and has marked either a swing high or low. However, it can also mark a breakout. Let's see how it manifests late this week or early next week.
Dec Crude Oil Update: today it had a pullback from the 89.79 (Friday's high) and found support at the top of the little triangle it broke up from last week around 86. Crude should next have another up leg to the 94 area. Check out the updated Dec Crude chart:
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