Markets

Autochartist - Daily Commodities Update: Corn

Corn futures have made a short term bottom at the lower end of a potentially bullish Falling Wedge chart pattern, shown here on the hourly candlestick chart. The swing low near $6.90 per bushel in July Corn futures came after a nearly $1 per bushel drop from the highs in heavy fund liquidation during last week's trade. This may represent a selling climax for the market as the July contract approaches its delivery date.

The Falling Wedge chart pattern has contained much of the move lower, and the pattern is now coming to an end as the market approaches the apex where the support and resistance trend lines converge. The shallow retracement below the first swing low of $6.98 found strong buying to bring the price back into the wedge, positioning corn for a possible upside breakout to recover some of last week's losses.

A rally above the resistance at $7.10 per bushel would initiate the upside breakout and generate a buy signal, with a forecast to be determined by the momentum of the breakout. Further weakness in the market and a drop below last week's low at $6.90 would be viewed as strongly bearish, and could result in a continued price decline for the last trading days of the July corn futures which roll off the board at the end of June.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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