The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
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July Corn Futures:
Corn mazes have become popular tourist attractions in North America however the structural maze of the corn market is more like a trader’s trap. Since the termination of the rather robust move to 402.6 (front month continuation) in mid March it has been trading in a series of what appear to be non-impulsive moves which have headed lower and then higher only to lead to nowhere over the course of nearly a month and a half. In Elliot Wave term’s this type of action would be described as a triangle destine to break out either above or below the converging trend lines. A breach of 400.5 has the potential to run to /- 425 where as a breakdown below 385 would look to follow through to roughly 370. The strangle is currently trading for /- 9 cents. I suggest that one exit the position for a loss should it deteriorate to 4 cents. Therefore, with a risk of 5 cents on could capture a roughly 3.5 to 1 favorable risk reward strategy.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. Please feel free to contact me at Walsh Trading to discuss my insights into this or any market of your interest. Next week I have scheduled my 12th webinar. During this I will be applying my analytical approach to this and other future markets.
John Lunney, Senior Technical Analyst
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