Corn News is Mixed, but the Chart Looks Toppish

Reading the assortment of newsletters and agricultural updates, there are definitely mixed views in corn.  Just today I read about bullish possibilities, indecision and reasons for a pullback (see quotes below).  Therefore, I turn to the corn chart to see what it looks like.

• Zaner Marker Morning Overview: “In position for resumption of the uptrend if China starts to buy” and “The bias for corn is to drift higher into the new year but managed money holding an oddly large net long position could limit the markets ability to move higher.” From the Zaner Daily Newsletter.

• AG Web- Farm Journal: “Growers have been increasingly restless this week as they await news on a 2nd tranche of tariff aid payments.”

• Dan Hueber of the Hueber Report: “I am of the opinion that corn is due for a corrective pullback and if such a move materializes into early January, we could be presented with a nice purchase opportunity at that time.”

Looking at the continuous corn chart below, it shows price recently testing near this past summer’s high (388 area).  Following that line back in time, past congestion and resistance areas also appear around the line, offering it more resilience.  Additional bearish looking factors include:

• Volume has not increased substantially at this higher price level
• Oscillators have topped and turned down (MACD, Slow Stochastics and CCI)
• Gap between 378-380

When corn tested the 388 level in July/August, it sharply dropped 20 points.  This week we have the FOMC meeting, more potential news on the Farm package, January corn options expiring on Friday and trade/tariff news is an ongoing variable.  December corn trading may give us some excitement this year. This is the kind of market and chart to have a trading plan and defined limits.

Information is for educational purposes only and is not intended to be investment advice.