The corn market didn’t seem to be overly impressed by Friday’s USDA WASDE report and, after testing the 521’4 resistance pivot, price sold off sharply. It appears as though price action is finding a bit of support here at the 504’0 level in the early morning hours, so traders could use this pivot as initial support in corn.
The momentum in this market still does appear to be positive, albeit not as convincing as it was in earlier stages of this advance. Nevertheless, local momentum does appear strong above the 496’4 – 497’0 area on the chart, which will likely serve as the next significant support level in the event of a failure below 504’0. Price action has been relatively choppy with a slight positive skew to it over the past few weeks so traders should anticipate this and incorporate this market characteristic into their trading strategy. For more on this, please contact me directly.
Corn 30-minute Bar Chart (e-Signal)