Often we see corn hit a low around Thanksgiving and then move up into the end of the year. Will history repeat itself this year?
In last week’s shortened trading week, we saw March 2013 corn open at $7.30¼ per bushel and close the week at $7.49¾, and yes it was a low volume week.
On the daily chart of corn we see ADX rising now at 23.5. This is telling us strength is developing, but this is not yet a strong trending market. Once ADX gets over 25 and the price action breaks over $7.60, then we will see the strong trend develop. DI Differential was at zero on Nov. 19. MACD is adding divergence from above the signal line and is looking to cross over the zero on the histogram, which would be bullish. And Stochastics are in overbought territory. Because this is not yet a strong trend, we need to know we could see a correction down from $7.60.
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