Corn futures emerged from a. long-developing pattern on the 240-minute candlestick chart during Wednesday's sell-off. Corn had been struggling to regain the top of a Head and Shoulders but could not breach resistance at the $6.45 per bushel neckline. Having now been repelled though the key support shown here on Autochartist, the projected path of least resistance for the nearby corn futures is deemed lower.
Wednesday opened weak and failed to find enough ground to hold onto through any of the intra-day patterns. Declining 15 cents per bushel to initiate the breakout, the momentum waned somewhat at the close of the session. This sets up a forecast range of another 10-cent drop at a minimum, though renewed selling pressure could carry the price down to the low end of the range near $6.13 per bushel,
AS this has been a sustained pattern over the last several weeks for the corn market, it is possible the breakout here is signaling a new leg down for the intermediate term. This might result in a move into the $5 pre bushel handle once again. A sharp reversal back above the neckline resistance ideally to $6.50 is needed to turn this into a bullish chart analysis.
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