Focus: December Corn
December corn touched major support at $3.67 last week and rebounded, closing up over 18¢. Friday’s close at $4.03 was in the upper 50% of the day’s range, a bullish sign for a potential short-term reversal to the upside. Short-covering and speculative buying will likely push prices higher this week. Wheat and soybeans also closed higher Friday, confirming that grain prices may be on the rebound after a three-month decline. The daily chart of corn shows a horizontal support line at $3.67 and the long-term trendline on intermediate-term pivot highs. A test of the trendline is the target for corn, and any long-term trend reversal would need to penetrate above the line. ADX shows a bearish DMI expansion which should contract as prices rise.
Chart Courtesy of TradeStation
Dr. Charles B. Schaap transitioned from health care to wealth care in the nineties. He is the author of ADXcellence —Power Trend Strategies and Invest with Success—Big Profits for Small Investors. Dr. Schaap is a commodity futures strategist and recognized authority in technical analysis of the financial markets. His website is www.adxcellence.com.
