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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Thank you for pointing it out!
ReplyDeleteWell spotted! I'll keep an eye on it.
ReplyDeleteVery helpful assessment.
ReplyDeleteThank you for the analysis.
ReplyDeleteThank you for the analysis i'll keep an eye on corn.
ReplyDeleteThank you for the relevant information.
ReplyDeleteGood post, thanks.
ReplyDeleteThanks for sharing your view.
ReplyDeleteImportant information, will keep it in mind!
ReplyDelete