CORN has broken out of a bullish descending wedge pattern to the upside, entered a bearish rising wedge, broken down and back-tested the previous resistance level before bouncing back. There are positive divergences on the charts which suggest a much longer up trend in play. These positive divergences can also be seen on the weekly and monthly charts of CORN which...
Keep it simple stupid.
I will buy on breakout to the upside with volume. Or, more conservatively, wait for a retest after breakout.
Entry around $16.5. Resistance levels marked on the chart at $20, $23, $27, etc.
Why would I make this trade?
> CORN consolidating...CORNSOLIDATING!
> RSI Increasing
> Equity prices are falling across the board. See the DOW...
Please see the comments on the chart:
In sum, I'm watching these indicators:
385 MA (greater than 2% above, breaking a multi year precedent)
Bullish movement this week
Calendar year performance (not negative?)
OBVOSC Higher Low
RSI Bullish Divergence
****Not covered here -- tariffs: 1st and 2nd order effects
Bottoming pattern at support, with indicators showing signs of reversal. Tight stops, short term play up to resistance with potential for long term play. US Farmers planning on planting less grains this year, leading to increased demand.
$CORN has a confirmed long term uptrend here, we can enter longs risking a drop to 19.01, and aim for a big rally this year. Fundamentals imply a potential advance due to climate, plus, it's a really sound technical trade.
Corn has short term head and shoulder pattern and also pretty important TL break.. i am long corn and wheat both. Will post detail analysis on weekend. Both corn and wheat might be nearing an important trend change.
We should enter longs in CORN at market open tomorrow, our risk is 85 cents down from our entry (whatever that is), so size your trade accordingly, risk 1% on the position, and aim for a 13.95% rally, to begin with.
There's a possibility that this is a long lasting bottom in this commodity (and possibly many others), so don't miss out on the move.