Focus: Corn
Corn prices hit a high of $4.50 in early June and then reversed downward, declining for four consecutive weeks. The June high set a resistance level which contributed to the formation of a weekly ascending triangle pattern. Last week prices were stagnant on an unremarkable corn supply report from the USDA and weather conditions that have continued to remain favorable for crops. Corn closed last week at $3.455, marginally lower than the prior week. Prices are approaching the 2008 lows, so buyers may be gaining more interest, and a technical bounce could be setting up. The last +DMI challenge (crossover) for dominance failed in June, but a future successful crossover of the +DMI above the –DMI could signal the end of falling prices.
Chart Courtesy of TradeStation
Dr. Charles B. Schaap 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.
