While most investors focus on commodities such as gold and oil the chart of corn is much more interesting than either of the aforementioned more popular commodities, and one which shrewd market participants cannot afford to ignore:
A breakout above $3.60/bushel (360 in chart above) would confirm a major long term bottom in corn was put in place at the end of August. The breakout would target $4.00+ with the next level of potential resistance up near $3.73-$3.75.
Zooming out to a much longer term chart we can see that the August low is also quite significant because of the implications for a potential long term double-bottom:
Corn (Daily – 6 year)
The late-August low in corn looks a lot like the October 2014 in terms of momentum, money flow, and volume divergences. In addition, the fact that corn has been mired in a 4+ year bear market make the potential implications of a long term chart pattern double-bottom highly significant.
Those who do not trade futures can utilize the exchange-traded fund CORN to express a bullish view on corn OR investors can buy any number of agriculture stocks/ETFs such as AGU, DBA, POT, etc.
To find out how we are trading corn, gold, and other commodities/stocks you can sign up for CEO Technician’s premium service and gain access to live market analysis, trade setups/updates, and a morning email which will help get you prepared for the trading day!
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