Pro Farmer Senior Market Analyst Rich Posson says at least a Level 2 cycle low is due this month in corn futures if not placed as of last week's volatile range. "The oversold five-week stochastic may make a buy signal if there is a higher close this week," he says, adding that volume jumped last week alongside a rise in open interest and lower prices to suggest net selling.
"Nearby resistance is the downtrend around $3.80, followed by the downtrend near $3.95. Also watch the five-week moving average near $3.83 1/2, but keep in mind the close of the week is the most important factor for this study. Support is last week's low at $3.57 1/2 for the December contract," says Posson.
On the December corn chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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