Commodity Futures Trading

[DiscoverGold]

Corn (CBOT) (C) - Warning Potential Sharp Move to Upside »» Daily Summary Analysis
By: Marty Armstrong | September 5, 2020

This market made a new high today after the past day.The market opened higher and closed higher. The immediate trading pattern in this market has exceeded the previous session's high intraday reaching 3592. Therefore, this market has rallied over the past 23 trading sessions. However, this session barely a new high,Nonetheless, the market remains positive on our system indicators still with some overhead resistance. This market has not closed above the previous cyclical high of 3642. Obviously, it is pushing against this resistance level.

The historical perspective in the Corn (CBT) included a rally from 2005 moving into a major high for 2012, from which the market has been in a bearish trend since then moving into the low in 2016 forming a declining trend of 4 years bottoming at 3146. Nonetheless, we have not elected any Yearly Bearish Reversal to date from the turning point of 01/01 from 2012, which tends to warn that the 2012 high could still be challenged until we elect a Yearly Bearish Reversal. Nonetheless, the bounce since the 2016 low has been unable as yet to make any new high. Nonetheless, we have elected two short-term Yearly Bullish Reversals to date from the turning point of 01/01 from this 2016 reaction low. The last Yearly Reversal to be elected was a Bullish at the close of 2016. However, the market has been unable to exceed that level intraday since then. This overall rally has been 3 years in the making.

From a perspective using the indicating ranges on the Daily level in the Corn (CBT), this market remains moderately bullish currently with underlying support beginning at 3550 and overhead resistance forming above at 3586. The market is trading closer to the resistance level at this time.

On the weekly level, the last important high was established the week of August 31st at 3642, which was up 19 weeks from the low made back during the week of April 20th. So far, this week is trading within last week's range of 3642 to 3510. Nevertheless, the market is still trading upward more toward resistance than support. A closing beneath last week's low would be a technical signal for a correction to retest support.

The broader perspective, this current rally into the week of August 31st reaching 3642 has exceeded the previous high of 3550 made back during the week of July 6th. Right now, the market is above momentum on our weekly models hinting this is still bullish for now as well as trend, long-term trend, and cyclical strength. Looking at this from a wider perspective, this market has been trading up for the past 19 weeks overall.

Interestingly, the Corn (CBT) has been in a bullish phase for the past 4 months since the low established back in April.

Some caution is necessary since the last high 3642 was important given we did obtain one sell signal from that event established during August. That high was still lower than the previous high established at 3940 back during January. Critical support still underlies this market at 3385 and a break of that level on a monthly closing basis would warn of a further decline ahead becomes possible.

DiscoverGold

Click on "In reply to", for Authors past commentaries