by Jim Wyckoff, Senior Analyst TraderPlanet.com

DECEMBER CORN

December corn futures closed down the 20-cent limit at $4.03 1/2 today. Fund long liquidation pressure was featured today. Some beneficial rains falling in the eastern U.S. Corn Belt, and more in the near-term forecast, were a bearish factor in the market today. No serious chart damage occurred, but follow-through selling on Wednesday, including a close below major psychological support at $4.00 would begin to produce some chart damage. Also, more selling pressure would raise the specter of a bearish double-top reversal pattern forming on the daily bar chart. But remember that bigger weather markets in the grains can produce chart damage only to see prices come roaring back to bullish life in a hurry. Bulls may want to consider buying any further price weakness on Wednesday. Bulls still have the technical advantage as an uptrend is still in place on the daily bar chart. Bulls’ next upside price objective is closing prices above solid technical resistance at $4.15. The next downside price objective for the bears is closing prices below major psychological support at $4.00 a bushel. First resistance for December corn is seen at $4.05 and then at $4.10. First support is seen at $4.00 and then at $3.95 3/4–the bottom of an upside price gap on the daily bar chart.

Wyckoff’s Market Rating: 7.0.

NOVEMBER SOYBEAN

November soybeans closed down 25 cents at $8.64 today. Prices closed near the session low today on profit-taking pressure, much of which was fund long liquidation, and on the bearish rains in and forecast for the eastern U.S. Corn Belt. No serious chart damage occurred Tuesday, but bulls do not want to see strong follow-through selling pressure on Wednesday. The bulls still have the technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at the contract high of $8.93. The next downside price objective for the bears is closing prices below solid support at $8.50. First resistance for November soybeans is seen at $8.70 and then at $8.75. First support is seen at today’s low of $8.61 and then at $8.55.

Wyckoff’s Market Rating: 7.5.

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Source: VantagePoint Intermarket Analysis Software


DECEMBER SOYBEAN MEAL

December soybean meal closed down $7.30 at $239.30 today. Prices closed nearer the session low on profit-taking pressure. No chart damage occurred but the bulls do not want to see strong follow-through selling on Wednesday. Meal bulls still have the near-term technical advantage. The next upside price objective for the bulls is producing a close above solid chart resistance at this week’s high of $248.00. The next downside price objective for the bears is closing prices below solid support at $230.00. First resistance comes in at $240.00 and then at $242.50. First support is seen at today’s low of $238.00 and then at $235.00.

Wyckoff’s Market Rating: 7.0.

DECEMBER BEAN OIL

December bean oil closed down 73 points at 36.74 cents today. Prices closed nearer the session low. No chart damage occurred today. But more losses in the near term would raise the specter of a bearish double-top reversal pattern forming on the daily bar chart. Bean oil bulls still have the near-term technical advantage. The next upside price objective for the bulls is pushing prices above solid technical resistance at the contract high of 37.65 cents. Bears’ next downside price objective is pushing and closing prices below solid support at the June low of 35.75 cents. First resistance is seen at 37.00 cents and then at 37.25 cents. First support is seen at today’s low of 36.55 cents and then at 36.00 cents.

Wyckoff’s Market Rating: 7.5.

DECEMBER CHICAGO SRW WHEAT

December Chicago SRW wheat closed down 21 1/4 cents at $6.01 1/2 today. Prices backed off on profit-taking pressure today following recent strong gains, and no chart damage occurred. Wheat harvest is under way in the southern U.S. Plains and that’s a bearish seasonal factor. Wheat bulls still have upside technical momentum. Bulls’ next upside price objective is to close prices above resistance at the contract high of $6.26 a bushel. The next downside price objective for the bears is closing prices below solid support at $5.80 a bushel. First resistance is seen at $6.10 and then at today’s high of $6.18 1/2. First support lies at today’s low of $5.99 and then at $5.87.

Wyckoff’s Market Rating: 8.0.

DECEMBER K.C. HRW WHEAT

December K.C. HRW wheat closed down 17 3/4 cents at $5.92 today. Prices closed near the session low on profit-taking pressure from recent strong gains. Bulls still have the technical advantage. Bulls’ next upside price objective is closing prices above solid resistance at the contract high of $6.31 a bushel. The bears’ next downside objective is closing prices below solid support at $5.75 a bushel. First resistance is seen at $6.00 and then at today’s high of $6.08 1/2. First support is seen at today’s low of $5.91 and then at $5.85.

Wyckoff’s Market Rating: 8.0.

DECEMBER OATS

December oats closed down 16 1/4 cents at $2.77 3/4 today. Prices gapped sharply lower on the daily bar chart, hit a fresh 2.5-week low and closed near the session low. Some near-term chart damage occurred today and bulls need to recover soon. The next upside price objective for the bulls is closing prices above solid technical resistance at $2.88 1/2, which would fill on the upside today’s downside price gap on the daily bar chart. Bears’ next downside price objective is closing prices below solid technical support at $2.70. First resistance lies at $2.80 and then at $2.82. First support is seen at today’s low of $2.76 1/2 and then at $2.74.

Wyckoff’s Market Rating: 7.0.

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