ZC1!
Commercial accounts are currently net short on corn futures contracts (-355k contracts), while as noncommercial accounts aka, Retail traders, are net long (+411k contracts). These two positions are at extreme polarized ends of the play. Usually commercials tend to be net short on any asset but its the extremes one should keep an eye on.
Corn is currently at a basing pattern, with a previous impulsive move to the downside. Entering at a base is relatively risky, since the pattern can either turn into a drop base drop or a drop base rally pattern. So one can play this two ways, enter short at the base with a tight SL so if an impulsive move to the upside were to occur, you will stop out with minimal damage. Or, wait for the pattern to play out and if the pattern is a drop base rally, then short a potential double top. The play I am making is short at the base of this pattern with a SL at 407'5.
Targets for the short are
- 0.5 retracement
- 0.618 retracement
- 0.786 retracement
- 305'4
I will be taking profits at each target, with the last target being a runner position.
Comment:
407'5 stop hit, will re-evaluate
Comment:
Structurally this chart is bullish with the higher low that printed.
Comment:
Shorted the bottom like a boss