March Wheat - 0.75 Higher
March Corn - Steady to 1.25 Lower
Jan Soymeal - Steady to 0.50 Lower
Jan Beans - 0.50 Lower
February Crude Oil marked it's high 15 cents beyond the 70.60 resistance, then sold off for about a 1.40 opportunity.
support - 69.45, 68.60
resistance - 70.75, 71.50
January Soybeans follow through buying today tells us the fund bulls have taken over, and it increases the odds that a significant low is in place. Today's upleg begins the 3rd wave higher (out of 5) and confirms more upside before a correction occurs. Beans sliced through the 980.00 resistance. Now, this becomes support.
support - 980.00, 970.00
resistance - 1000.00-1002.00, 1014.00
January Soymeal sliced through the 303.00 resistance, marking a break-away gap with very high volume on the open, and closed up about 13 bucks on the day! A gap of this nature signals a swift move higher - the bulls don't mind paying up because they've realized how unbalanced (out of wack) the bear side has become.
support - 303.00, 298.50
resistance - 3317.00-323.50
There is more information about break-away gaps from Investopedia below if interested.
March Corn also marked an up day, closing about 5.25 cents higher. It closed above the October 2nd high of 452.25 for the first time.
support - 451.50, 448.50
resistance - 461.00, 475.00
March Wheat marked it's high at the 544.00 resistance band, where some selling occurred. A close above 544.00 will increase the bullish argument, which is only 2.25 cents above the close.
support - 539.50, 536.00
resistance - 559.00-561.00, 567.00-570 - lots of bumps on the left for traders to get in and out as higher highs and lows should occur once the 544.00 price is left behind.
March HRW Wheat closed about 7.00 cents higher, trading within 2 ticks of the 555.00 resistance level.
support - 550.00, 545.50
resistance - 562.00, 571.50
March Spring Wheat closed only 4.50 cents higher on the day, trading within 1.25 cents of the 598.00 resistance point.
support - 592.25, 588.00
resistance - 598.00 - breakout, 604.00-606.00
March S&P traded to within 11 bucks of the 6052 support price, as the buyers were more eager.
support - 6053, 6015
resistance - 6150-6164
Understanding the Breakaway Gap
A breakaway gap occurs when the price gaps above a support or resistance area, like those established during a trading range. When the price breaks out of a well-established trading range via a gap, that is a breakaway gap. A breakaway gap could also occur out of another type of chart pattern, such as a triangle, wedge, cup and handle, rounded bottom or top, or head and shoulders pattern.
Breakaway gaps are also typically associated with confirming a new trend. For example, the prior trend may have been down, the price then forms a large cup and handle pattern, and then has a breakaway gap to the upside above the handle. This would help confirm that the downtrend is over and the uptrend is underway. The breakaway gap, which shows strong conviction on the part of the buyers, in this case, is a piece of evidence that points to further upside in addition to the chart pattern breakout.
A breakaway gap with larger than average volume, or especially high volume, shows strong conviction in the gap direction. A volume increase on a breakout gap helps confirm that the price is likely to continue in the breakout direction. If the volume is low on a breakaway gap there is a greater chance of failure. A failed breakout occurs when the price gaps above resistance or below support but can't sustain the price and moves back into the prior trading range.
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