Corn to make a Head and Shoulders Pattern? Bullish Agriculture!

I have been trading the agricultural commodities much more lately. On a long term approach (investing) I am bullish agricultural because I see food supplies diminishing due to weather. Just this Spring and Summer, crop yields did not produce as much as before and according to information on Martin Armstrong's blog, farmers planted crops late in the East due to a lingering winter. I expect these weather uncertainties to keep occurring.

Soil in the west is also diminishing. This can easily be remedied through things such as Zinc and other things like phosphate etc but don't want to get too scientific here.

What this means is that in the future we will likely transition to indoor/greenhouse farming.

Another bullish aspect is China. If you follow my work, I have said the only reason China would come to make a trade deal/truce is if their credit problem worsens, and if their food issue worsens. China has been hit hard with the swine flu and the army virus and the government is subsidizing food prices, especially pork. This could be a more short term/intermediate term catalyst.

Onto the charts. A good confluence for Corn . We hit a major support/flip zone at around the 3.45 zone.

You can see the downtrend with its lower highs and lower lows. They are well defined. Remember, by definition once a lower high swing is broken and we stop making new lower lows, the downtrend is now nullified. We either range or begin an uptrend.

We can see the lower high swing at 3.60 was broken and also retested. Buyers are coming on here.

On the daily we are now awaiting our first HIGHER LOW swing in a possible new uptrend which we could have here. This would make a head and shoulders pattern and the confirmed higher low swing once we break above the neckline at the 3.70 zone.

Overall this is looking good. We could see a move up to the 4.00 level.
Very nice chart analysis mixed with longer term reality consumption. Lots of divergence on the technicals on the last move down the beginning of September for a good setup to buy. It all makes sense.
+1 Reply
@nuttydave, Thank you! Let's hope we get that break this week! Be patient!
Watching this one for sure
+1 Reply
Uncharted-FX xrphodler99
@xrphodler99, Yup! This is still one of the best looking set ups for the week ahead!
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