From the June 01, 2010 issue of Futures Magazine • Subscribe!

Tech Talk: Corn, soybeans and wheat trends

Corn remains in a large sideways consolidating trade. This type of chart action provides low risk trades for any trader but patience is the key. Wait for prices to either test $3.10 support or $4.10 resistance, or if the Stochastic and/or RSI signal a buy or sell, then take action. Risk is a weekly close that violates the trendline.

Chart

Soybeans have been trending slightly higher and are now approaching the top end of a larger symmetrical triangle. Using the Stochastic can offer guidance but once the triangle is taken out, use the MACD and trends as a long-term trading tool.

Chart

Wheat remains locked in a descending triangle but held support and posted a minor reversal. Traders should play this range and keep risk tight. Buy dips against $4.40 support and sell against $5.18 resistance.

Chart

Rich Nelson is director of research for Allendale Inc. You can reach him at rnelson@allendale-inc.com or www.allendale-inc.com

About the Author
Rich Nelson

Rich Nelson is Director of Research at Allendale, Inc. in McHenry, IL. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com.

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