December Corn Futures (C_Z) closed at $5.54 per bu. after rallying a 'big' 4.1% during Wednesday's session. The gain came on an 'outside day' pattern, where the intra-day high was higher than the previous day's high and the low was lower than the previous day's low price.
Q: How has C_Z performed in the past when, during September, it rallies by more than 2% on an 'outside day' pattern?
A: According to the nine previous occurrences of this event, EventEdge indicates that December corn has shown a very strong bullish edge that peaks 12 trading days after the event. Thus, the projected date for the peak of the bullish edge relative to the current event date (Wednesday, Sept. 17, 2008) is Friday, Oct. 3, 2008.
December corn rallies in 100% of the cases (9 of 9) by an average of 4.4% relative to the close on the event date. Which, based on the close on the event date ($5.54), provides a target price of $5.78’2 per bu.
For more Market History go to www.markethistory.com
HYPERLINK "http://www.markethistory.com/staff/detail.html?s=ronish" Ronish Patel is an analyst with MarketHistory.com.
