Corn’s tumble: Correction or trend change?
Last week September 2011 corn opened at 653½ and closed at 606¾. The high for the week came in on Wednesday, June 29 at 697 one day before the USDA reported on corn acreage (raised to the second highest since 1944) and corn stocks (much higher than expected). You see the effect these reports can have on the markets. But the question is for how long? Read the detailed fundamental report below to see for yourself.
Looking at the daily chart below you will see that ADX at 22 shows this market to be in a weak trend. MACD is bearish and adding divergence, and Stochastics are oversold. Weak trending markets will not remain overbought or oversold for any length of time. Also, the large gap (no doubt caused by the bearish USDA reports) between the June 30 close and the July 1 open could be filled quicker than later. Look at the daily chart to see when Trends in Futures issued a sell recommendation.
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