Corn Bulls Still in Technical Command

May 26, 2009 07:00 PM
 

   July corn futures at the Chicago Board of Trade have been
chopping in a sideways trading range for nearly three weeks.
However, the overall near-term technical picture continues to
favor the bullish camp.
    July corn is still in a five-week-old uptrend on the daily
bar chart. Also, recent price action has formed a bullish
ascending triangle pattern on the daily chart. But for the bulls
to gain additional upside technical strength the will have to
push and close July futures prices above stiff overhead technical
resistance at last week's high of $4.34 3/4 a bushel. A close
above that level would open the door to a quick challenge of
solid chart resistance at the January high of $4.49 1/4 a bushel,
basis July futures.
    Technical support for July corn is located at $4.20, at $4.17
1/5, at $.15 and then at $4.10 a bushel. Stronger chart support
is located at the spike low of $4.06 1/4, with major
psychological support located at $4.00 a bushel in July corn.
    For new-crop December corn futures, solid overhead technical
resistance is located at last week's high of $4.56. A close above
that key price level would open the door to a quick challenge of
technical resistance at the January high of $4.71 1/2. Chart
support for December corn is seen at $4.39, at $4.33 and then at
$4.25.

 

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