Looking ahead to Wednesday by reflecting back on Tuesday's trading actionFocus on
GRAINS: Despite Tuesday's rally, the technical picture still favors the BearsGRAINS: 02/03/10 Higher to sharply settlement Tuesday for corn, rough rice, oats, Minneapolis, Kansas City and Chicago wheat along with soybeans, soymeal and soyoil. All of the wheat continue to be in down-trends overall as evidenced by the Chicago wheat chart below. Corn settled higher with its highest close in a week. Still, corn should continue working towards the 350 area where its support(Mar. contract) starts and goes down to 425.
However, this might be a long, struggling process to get there if I'm correct. Traditionally the grains fill around 90% of their gaps and the December corn contract has one at 392 1/2. Rice settled sharply higher giving me a BUY SIGNAL this time. However, the projection higher isn't that great technically at this time. Oats settled higher this time still looking very weak overall while in a BEAR TRIANGLE. On the other side of the coin there is very little resistance up to to 255 basis the March contract posing a large risk. The beans and meal made new recent lows again but rallied to settle higher this time in reversal type action. Oil closed sharply higher with its highest settlement in two weeks! The trend is still lower but this could be the start of a reversal. On the other hand there is good resistance in the 3800 area basis the March contract.