Corn Update: Major breakout

12

Near term strength is having a significant effect on the longer term outlook as well. Despite USD strength, most soft commo’s are performing well. Corn is currently rallying above the consolidation pattern (since 2014), thus triggering a new primary uptrend.

Upside potential is significant; the zone around 4.26 is a bare minimum. 4.46 and especially 5.15 are much more likely targets for the next 6-12 months. Corn is a strong buy in USD and even more so in EUR or JPY.

  • Primary trend: positive
  • Outlook:┬ánew primary uptrend. positive
  • Strategy: hold-long and/or buy dips
  • Support: 3.66 / 3.592
  • Resistance: 4.26 / 4.46 / 5.15+
  • Outlook cancelled/neutralized 3.66

Weekly chart Corn (Oanda)

Back
Next

19 MAR 2018

The current declines are a regular counter trend dip, triggered after hitting the weekly resistance area around 3.85. This decline could continue for a couple of days after which base building should occur around the key support at 3.649. here the weekly cloud support and daily retracements and regressions fall together. Note that base building can easily take up to 3 weeks to fully pan out.

Expect a bit more weakness followed by a period of choppiness. The longer term remains bullish targeting 3.85 and 4.07 after that.

  • Primary trend: positive
  • Outlook:┬áregular counter trend dip, positive
  • Strategy: hold-long and/or buy dips
  • Support: 3.649 / 3.592
  • Resistance: 3.85 / 4.07+
  • Outlook cancelled/neutralized below 3.592

Daily chart Corn (Oanda)