Bulls Look For Corn Market Bounce
Once again, the corn felt some spill over weight from the wheat that finally brought May corn within 3/4 cents of the uptrend line.
Commentary early in the week mentioned that while we don't have bearish news for corn, the chart allowed for a sizable pullback which has all been used up today.
This means that Monday will be a big decision point for the corn market. It will either have to bounce off this trend line or threaten to take it out leaving follow up technical support down at 372 1/4.
Fundamental news would suggest corn will hold that line while continued spill over resistance from wheat will put it to the test, especially if rain is still seen in HRW areas on the Monday morning weather maps. Once again this will mean that corn traders will want to watch both South American and Plains weather maps to start next week just as much as corn fundamentals themselves.
• The first test of the uptrend line saw active support as we would expect
• Bulls will want to see that uptrend line held and even see a bounce off of it quickly on Monday
• If the trend line can be taken out Sunday night it will open the chart up to a technical setback down to 372 1/4
• Bears will be looking for rains in the HRW areas on the Sunday night maps to cause overnight corn trade to take out the trend line
Rich Nelson Allendale Inc. 815-578-6161
This material has been prepared by a sales or trading employee or agent of Allendale Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Allendale’s Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.
The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Allendale Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.