The corn (NYBOT:JCK14) market has been relatively range-bound over the past two weeks as traders begin to look forward to the quarterly crop report set to be released at the end of the month. The intermediate term directional bias in this market remains positive with near-term momentum being relatively neutral. Currently, price appears to be in the process of a swing higher, targeting the 492’6 area as the first level of resistance and a potential profit taking area for long positions. Above here, the next significant resistance level looks to be the 3/7 peak around 502’4. Price has recently found support around the area from 476’4–478’0, which should continue to act as support going forward. Furthermore, there is an ascending trendline originating back in mid-January that interests the market around 475’0. This could be another significant area of support on the Corn chart. All things considered, the market appears to have a slightly positive tone; however, be cautious trading the grain markets over the next few weeks as the upcoming quarter report will definitely impact price action.
Corn, 30-minute Bar Chart, eSignal
Crude oil (NYMEX:CLJ14)
Crude is currently trading at an important technical area on the chart and how price reacts from here could set the tone for the remainder of the week. The area from 9933–9957 represents a cluster of Fibonacci retracements taken from different price ranges on the chart. This cluster of key retracement levels can often serve as a significnat area of support/resistance on the chart. Momentum in the crude market is a bit unclear at this point; however, crude oil prices have declined into some key levels of potetnial support. Not only is the previously metioned Fibonacci confluence zone relevant today, but also structural supprot can be seen at 9840 along with an intermediate term asscending trendline entering the market around 9770. The market has been making relatively lower lows and lower highs sicne topping in early March; however, most recent price action has hosted a series or higher lows and higher highs, signally positive near-term momentum. If this positive momentum is going to materialize into something of substance, look for prices to maintain this positive technical structure and target the 10100 and 10218 pivots to the upside.
Crude oil, 30-minute Bar Chart, eSignal