February 19, 2009
CBOT May corn sees downside "breakout"
Chicago Board of Trade May corn futures have recently produced a downside "breakout" from a bearish descending triangle pattern on the daily bar chart. Measuring implications from the triangle pattern in May corn points to a downside target of US$3.00 a bushel.
May corn futures are also trapped below a five-week-old downtrend on the daily bar chart and on Tuesday hit a fresh two-month low.
The corn market bears do have fresh downside technical momentum on their side and are looking for more on the downside in the near term.
Technical support for May corn is located at US$3.50, at US$3.40 and then at US$3.38. Stronger technical support is located at the contract low of US$3.15 3/4, scored in December.
For the beleaguered corn market bulls to begin to regain some fresh upside near-term technical momentum, they would have to push and close May corn futures above solid technical resistance at the US$3.90 level.
