Focus: September Corn
Last week was a swing reversal week for corn. On Monday, corn prices advanced 18.5¢, setting a high of $3.65 and closing at $3.58. But prices declined 36¢ during the remainder of the week, closing down 17.5¢ at $3.22. Favorable weather conditions have kept production expectations high, creating continued weakness in corn prices. On the daily chart, price is now swinging down to test the low of $3.02 set in July when the –ADX registered a very strong bearish peak of 70. The current swing down is occurring on a falling ADX line. This suggests the bears are weakening, and prices will either enter a range pattern or begin a trend reversal to the upside.
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.