Those who track my weekly trading journal know that recently Corn offered an amazing long-term long opportunity with the price being at the bottom of a 5-year channel. Since May 17, we increased the position and partially closed it last week. Now, after a retracement, we saw last week, new entry points emerge.
Before I continue, please note that I do hold ZCU-20 contract. As always, please note that this analysis is my point of view, and trading is a risky activity. You are the only responsible for your trading actions. Now, with disclaimers being said, let's take a look at the trade.
So, getting back to Corn. Two months ago the price was near the lowest border of a 5-year channel, which spreads from 310 to 440. Besides, the net position of producers in the CoT reports hit the max value of the last 3 years. In other words, the possibility of an upward movement was pretty high.
Since it's a really long-term position, there will be plenty of new entries. The last entry we had was on June 26. Now we have another one. During the last week, the price plunged and approached 50-period daily MA. Today, the early futures activities made a possible hammer, which may be a good long-entry point. However, since this candle pattern formed with low accompanied volume, it may be unreliable. For now, I suggest waiting for the pre-market session and consider an increase in the long position in case the open price won't be less than the 330.
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