Corn Bulls Gain Some Upside Technical Momentum

December 14, 2008 06:00 PM
 
   March corn futures on the Chicago Board of Trade on Monday
hit a fresh four-week high of $3.90 a bushel. The key "outside
markets" have been bullish very recently--a sharply lower U.S.
dollar versus the other major currencies and higher crude oil
prices.
    March corn has seen a price rally of  around 75 cents a
bushel from the Dec. 5 contract low of $3.05 1/2. The next upside
technical objective for the corn bulls is to produce a close back
above major psychological resistance at $4.00 a bushel.
    While the corn market bulls have gained near-term upside
technical momentum the past week, prices are still trading below
a downtrend from the late-June contract high of $8.16 a bushel.
It would take a price move above the last significant "reaction
high" on the daily bar chart to negate that price downtrend. That
last reaction high comes in at the $4.50 price level, scored in
late October.
    From a Fibonacci technical perspective, the bulls also have
some more heavy lifting to do to provide bullish signals. The
38.2% retracement level of the price move from the contract high
of $8.16 to the contract low of $3.05 1/2 comes in at $5.01 a
bushel for March corn.
    Near-term technical resistance for March corn comes in at
$4.00, at $4.16 3/4. at $4.25 and then at the November high of
$4.39 1/2. Support is located at Monday's low of $3.74, at $3.57
3/4, at $3.50 and then at $3.40.
    Look for the corn market and other commodity markets to
continue to look to the value of the U.S. dollar and to the crude
oil market for price direction.
Back to news

Comments

 

Rate this News Article:

Spell Check

No comments have been posted to this News Article

Close