by Jim Wyckoff, Senior Analyst TraderPlanet.com
JANUARY SOYBEAN
January soybean prices Friday closed solidly lower, near the session low and closed at a bearish weekly low close. Losses in the gold and crude oil markets and a stronger U.S. dollar pressured beans. Bean bulls still have the solid near term technical advantage, but strong follow-through selling pressure on Monday would likely produce some near-term chart damage. The next upside price objective for the bulls is to push and close prices above solid resistance at the contract high of $11.09 1/2 a bushel. The next downside price objective for the bears is closing prices below strong support at $10.62 1/4, which would fill an upside price gap on the daily bar chart. First resistance for January soybeans is seen at $10.90 and then at Friday’s high of $10.85. First support is seen at Friday’s low of $10.75 1/2 and then at $10.70.
11.09 1/2 — the contract high
10.88 3/4 — 10-day moving average
10.68 1/2 — 20-day moving average
10.32 3/4 — 40-day moving average
6.02 ——– the contract low
MARCH SOYBEAN MEAL
CBOT March soymeal prices Friday closed lower and near mid-range but did see a bearish weekly low close. Bulls still have the technical advantage but do not want to see strong follow-through selling pressure on Monday. The next upside price objective for the bulls is to produce a close above solid technical resistance at the contract high of $303.70. The next downside price objective for the bears is closing prices below solid support at last week’s low of $295.00. First resistance comes in at Friday’s high of $301.50 and then at $303.70. First support is seen at $295.00 and then at $292.50.
303.70 — the contract high
298.70 — 10-day moving average
293.20 — 20-day moving average
287.30 — 40-day moving average
191.50 — the contract low
MARCH SOYBEAN OIL
March bean oil prices Friday gapped lower on the daily bar chart, closed near mid-range and closed at a bearish weekly low close. The bean oil bulls still have the solid near-term technical advantage. However, the big decline in crude oil prices is a significant underlying bearish factor for bean oil. The next upside price objective for the bean oil bulls is pushing and closing prices above solid technical resistance at the contract high of 47.82 cents. Bears’ next downside technical price objective is pushing and closing prices below solid support at 46.00 cents. First resistance is seen at Friday’s high of 47.02 cents and then at 47.15 cents. First support is seen at last week’s low of 46.40 cents and then at 46.00 cents.
47.82 — the contract high
46.88 — 10-day moving average
45.92 — 20-day moving average
43.66 — 40-day moving average
30.85 — the contract low
MARCH CORN
Chicago Board of Trade March corn prices Friday closed slightly higher and near mid-range. A stronger dollar and lower crude oil and gold prices limited the upside in corn. If the outside markets show more weakness, then corn is likely to see more selling pressure. Corn bulls do still have the near-term technical advantage. The corn bulls’ next upside price objective is to push and close prices above solid technical resistance at last week’s high of $4.09 a bushel. The next downside price objective for the bears is to push and close prices below solid support at $3.95. First resistance for March corn is seen at Friday’s high of $4.05 and then at $4.07 1/2. First support is seen at of $3.95 and then at $3.91 1/2.
4.39 ——– the contract high
4.00 1/2 — 10-day moving average
3.99 1/4 —- 20-day moving average
3.87 3/4 — 40-day moving average
2.76 ——– the contract low
MARCH WHEAT
CBOT March wheat prices Friday closed weaker and near mid-range. While the bulls had a very good week overall last week, there is strong overhead chart resistance at last week’s high of $9.11 1/2. Bulls appeared to become exhausted at that price level last week. Bulls do still have the solid near-term technical advantage at present. Bulls’ next upside price objective is to push and close prices above solid technical resistance at $9.00 a bushel. The next downside price objective for the bears is pushing and closing prices below solid support at $8.50 a bushel. First resistance is seen at $8.93 and then at $9.00. First support lies at $8.75 and then at Friday’s low of $8.68.
9.66 1/2 — the contract high
8.35 3/4 — 10-day moving average
8.13 3/4 — 20-day moving average
8.33 3/4 — 40-day moving average
4.58 ——– the contract low
Source: VantagePoint Intermarket Analysis Software
MARCH KCBT WHEAT
March Kansas City wheat prices Friday hit a fresh seven-week high and then backed off to close slightly lower and near mid-range. Bulls do still have the near-term technical advantage at present. Their next upside price objective is pushing and closing prices above solid resistance at last week’s high of $9.28 a bushel. That is some strong overhead resistance for the bulls to overcome. The bears’ next downside objective is closing prices below solid technical support at $8.80. First resistance is seen at $9.15 and then at $9.28. First support is seen at $9.00 and then at $8.90.
9.50 ——– the contract high
8.53 3/4 — 10-day moving average
8.29 1/4 — 20-day moving average
8.42 3/4 — 40-day moving average
4.72 ——– the contract low
