One of my favorite and most reliable technical formations--a Symmetrical Triangle--has been violated in the March corn market.
Fundamentally, according to Hightower morning commentary on the corn today (1-14-15), "Failure to breakout to the upside to test new highs after a bullish (against expectations) USDA report on Monday, a surging U.S. Dollar and very negative commodity market sentiment forced the market sharply lower yesterday, and more downside could be ahead following the technical failure. March corn closed 16 1/2 lower on the session and down 21 cents from the early peak as volume was huge on the down move, spreads were slammed lower and the intraday action looked like heavy long liquidation."
Some of our Ag Hedge Strategist's here at Zaner Ag didn't find the USDA's numbers to be a surprise very much at all. In fact, I'm pretty sure our VP of Zaner Ag was right on the money with his predictions on some of the numbers reported by the USDA on Monday. At any rate, the feeling I am getting fundamentally is that there is more supply than demand. That could equal lower prices, no?
I have added my favorite technical indicators to this chart below. They are the 9- (red line), 20- (green line), and the 50-day (black line) simple moving averages or SMA's. I have also added Bollinger Bands or BB's (the two Royal Blue lines) and Candlesticks (the red and green bars with the candlestick wicks and on this daily chart each bar represents one day of trading). These few technical indicators tell me 8-10 different characteristics about the market at a quick glance so I have them saved on my charts in MARKETHEAD. That way they can populate on any chart I choose at the click of a mouse.
March daily corn chart