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Corn (CBOT) (C) - Knee Jerk HighClose »» Daily Summary Analysis
By: Marty Armstrong | September 26, 2020

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. Even so, 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. Even so, 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 neutral with resistance standing at 3656 and support forming below at 3634. 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 September 14th at 3792, which was up 21 weeks from the low made back during the week of April 20th. We have been generally trading down to sideways for the past week, which has been a moderate move of .0427% in a stark panic type decline.

The broader perspective, this current rally into the week of September 14th has exceeded the previous high of 3550 made back during the week of July 6th. This immediate decline has thus far held the previous low formed at 3090 made the week of April 20th. Only a break of that low would signal a technical reversal of fortune and of course we must watch the Bearish Reversals. 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. From a pointed viewpoint, this market has been trading down for the past week.

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

The market is trading some 0.27% percent above the last high 3642 from which we did originally obtain one sell signal from that event established during August. Long-Term critical support still underlies this market at 3385 and only a break of that level on a monthly closing basis would warn of a break of the current uptrend. At this time, the market is holding and is trading above last month's high as well.

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