Focus: March 2008 Corn
Corn reached projected target of $5.15 by setting a high of $5.19 on Jan. 15. There was a limit up day on Jan. 11, followed by an exhaustion gap.
Hourly swings and volatility is expected as price finds a new equilibrium level. The close Friday at $4.98 was below resistance. With soybeans and wheat also backing off of highs set in January, the grain market is showing general weakness after a strong uptrend which began in August of 2007. ADX is showing weakening momentum which is not unusual as price consolidates.
Chart Courtesy of TradeStation.
Dr. Charles B. Schaap is the author of ADXcellence —Power Trend Strategies. He is a director of the Hedge Fund Association. His website is www.adxcellence.com .
