Thursday, June 2, 2016

Possible bullish continuation on corn

On the weekly chart of the July corn contract we can see that the commodity has tried to break above the round number level of the 415.00. In a closer inspection of the chart, we can see that the latest weekly candle is leaving a relatively long lower shadow, which is an indication that the buyers have been trying to push the price higher and have been taking control of the instrument. If the next candle is a bullish candle, then that would be confirming a break out of the 415.00 level and the commodity would have the road clear to get all the way to the 200 week exponential moving average, around the 442.54 level. Precisely around the 442.54 level, we can see that there is where the price made its latest high. Therefore, if the price of corn gets to that level, it is possible to see a bearish bounce from that zone. If the price goes back down below the 415.00 level, then it may retrace to the 400.00 level, which in the past has acted as a resistance and in that case it could start acting as a support.


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