Corn rallied up toward initial overhead resistance around 8.24 where we have a short-term downtrend and the 40 day both coming into pay.
The chart is in a short-term uptrend and the technical indicators are pointed up as well.
The challenge will be if corn prices over the next few days can break through that overhead resistance, that’s about a dime above where we closed today.
Corn prices have been very choppy, going back to the month of June we fell sharply, rallied, fell sharply, rallied, fell again, rallied last week into Friday, and now we are setting back again.
Bottom line is we are carving out a range between 5.60-6.60.
Friday’s disappointing close with lower prices yesterday and today does have the chart turning downward in the short term. Technical indicators have turned lower as well.
Corn prices gapped higher last night on crop conditions falling by 3% points and then the market closed near the daily highs just above $6.
We are up about 40 cents from where we were at Friday afternoon.
The chart looks good turning higher, technical indicators look good as well, we’ve broken through the 10-day moving average, and now we are challenging the 20-day moving average.
Bottom line is chart and technical look quite good for corn following today’s strong performance.
Corn prices bounced nicely off Fridays low at 5.61, in fact todays closet 5.83 is 22 cents of Fridays low.
That was enough to turn the technical indicators.
If we could see this market trade higher over the next day or two that could turn the chart and trigger some short covering by trading systems that have gone short over the past couple of weeks.
Our first area of major overhead resistance is at 6.23, that’s the spike high that we left one week ago.
The corn chart had a very disappointing day, we came down not only testing the lows from almost 3 weeks ago but made a new low at 5.61.
That does keep the overall downtrend intact despite the fact that we have had a couple of sharp rallies, one 2 weeks ago and one last week.
Chart watchers are probably eying up an extended period of consolidation between about 5.40-5.65 and we are very close to that level.
So even though we are in a downtrend we are not looking for significant downsides from this level.
Corn prices down sharply today, down for the third day in a row and prices are now testing lows from about 2.4 weeks ago at 5.66.
Technical indicators aren’t really giving us much to go on, they turned up and down and up and down again as the market has been very choppy.
Unfortunately, overhead resistance right now comes in at 6.25, that’s the high posted Sunday night.
Corn prices have been extremely choppy for the last few weeks going up and down.
We currently have significant chart support down at the 5.66 level, that was the low posted about 3 weeks ago with initial overhead resistance at about 6.25.
Right now, the market seems to be consolidating in the lower end of that range.
Corn prices very disappointing today after yesterday having a big day and a breakout to the upside today’s prices breaking out to the downside as we continue to see very volatile trade.
Down sharp in late June, up sharply prior to the 4th of July, down sharp, then up a few days, and now down.
We expect more of this volatile trade with a range for the most part expected to be in the 5.60 range to the 6.60 range.