Corn - Still bearish, but with a bullish MACD divergence
Such as most of the commodities, Corn is still bearish trending. There was 1,5 months sideaway consolidation, but then the lower band of the range was broken by bears. No trade idea this time, just some observations:
A) 320 is 10 years (!!!) key support/resistance level.
In 2004 here was the peak. 2006 here was the break through, 2007 Corn retested this level after spiking to 430, then blew up from here above 700. I don't say this Key level will hold, that you can never know. What I say is this is very important! Bears have this in mind too.
B) Since August we have a massive bullish divergence developing in MACD too.
C) the upper key level is more visible now. Whenever a bullish reversal takes place, that will be confirmed with a break above 350. Then it can start trending the other way.
So what I see here is, there is a chance Corn can have a bottom around this 320 level. Will it move sideaway, or will it reverse the trend that we still don't know. Maybe it will break down and will collapse to or below 300.
Before we can say the trend may be exhausting we should first see the break of the trendline and a spike above Tenkan Sen. Later we'll need to see some price action ard Kijun Sen and a retest to the cloud. Still that kind of move would be only a counter trend. If you really look for a reversal, you have to wait for a confirmed bullish Kumo breakout.
A) 320 is 10 years (!!!) key support/resistance level.
In 2004 here was the peak. 2006 here was the break through, 2007 Corn retested this level after spiking to 430, then blew up from here above 700. I don't say this Key level will hold, that you can never know. What I say is this is very important! Bears have this in mind too.
B) Since August we have a massive bullish divergence developing in MACD too.
C) the upper key level is more visible now. Whenever a bullish reversal takes place, that will be confirmed with a break above 350. Then it can start trending the other way.
So what I see here is, there is a chance Corn can have a bottom around this 320 level. Will it move sideaway, or will it reverse the trend that we still don't know. Maybe it will break down and will collapse to or below 300.
Before we can say the trend may be exhausting we should first see the break of the trendline and a spike above Tenkan Sen. Later we'll need to see some price action ard Kijun Sen and a retest to the cloud. Still that kind of move would be only a counter trend. If you really look for a reversal, you have to wait for a confirmed bullish Kumo breakout.
