Tech Guy Opening Calls & Comments for 7/19/22
Sep Wheat - 1 to 2 Higher
Sep Corn - 1 Higher
Dec Corn - 2 to 3 Higher
Nov Beans - Steady to 1 Lower
As Roger has noted, the Grains have been under macroeconomic forces. There is a bigger energy at work here - most all commodities have been under a "risk off"/liquidation influence supposedly because of fear of recession or could it be something else? I do not know.
What I do know is the US Dollar looks to have topped out, while cotton, coffee, cocoa, orange juice, lumber, copper and silver and gold seemed to have bottomed out. If I was a fund, I'd be buying all of these assets. Well, maybe not lumber - it's too thin. There is some indication then, that this larger macro force is turning the tides.
If this energy is indeed shifting, the grains and oilseeds have plenty of reasons to go higher: Tight supplies, High demand, questionable growing conditions here and in Europe, etc. I think we will know pretty soon.
The Nov Beans corrected from it's triangle breakout yesterday w hile Dec Corn tested the bottom of it's triangle as seen on the 2 hour chart below. Once the fund buying kicks in there are several gap and projection targets up above.
Also remember Friday 7/22 or Monday 7/25 is a swing/turn date - looking more like a low but we have to get to Friday first.
Sep Crude Oil Update: after a decent up day, resistance sits at 102 - 103.40 (got pretty close today = 100.99) and support is 96. At this level, I am unclear if crude has a little push higher, or a backfill first. We will know much more tomorrow. For those long from 89-94, not a bad profit area.