Daily Commodities Update: Corn

After weakness in the commodities complex for the last several days, price action appears to have stabilized during Thursday’s trading, with a minor reversal appearing in the grain complex. Corn futures pushed through previous lows to round out Falling Wedge chart pattern, shown here on the 240-minute candlestick chart.

This pattern has held the bulk of trade in the Corn futures since the market began selling off from the record highs set in the first days of April, and Thursday’s swing low near $7.43 per bushel sets the lower end of the trading range for the time being.

Range trading between the support and resistance levels established on the chart by the Falling Wedge pattern may provide short term directional trades, with the possibility remaining significant of a retest of the previous highs posted near the beginning of the wedge. This would necessitate a topside breakout from the formation, with a projected price forecast generated on a break above $7.65 in the nearby Corn futures.

A correction back beneath the swing low would reverse Thursday’s market strength and create conditions for renewed technical selling pressure near $7.40 to carry the market lower from this congestion area.

(Source: http://www.commoditiesmansion.com/general-commodities/daily-commodities-update-corn/)