May 28, 2009
CBOT corn still has bullish near-term signs
Chicago Board of Trade July corn futures have been chopping in a sideways trading range for nearly three weeks. However, the overall near-term technical picture continues to favour the bullish camp.
July corn is still in a five-week-old uptrend on the daily bar chart. Also, recent price action has formed a bullish ascending triangle pattern on the daily chart. But for the bulls to gain additional upside technical strength they will have to push and close July futures prices above stiff overhead technical resistance at last week's high of US$4.34 3/4 a bushel. A close above that level would open the door to a quick challenge of solid chart resistance at the January high of US$4.49 1/4 a bushel, basis July futures.
Technical support for July corn is located at US$4.20, at US$4.17 1/5, at US$4.15 and then at US$4.10 a bushel. Stronger chart support is located at the spike low of US$4.06 1/4, with major psychological support located at US$4.00 a bushel in July corn.
For new-crop December corn futures, solid overhead technical resistance is located at last week's high of US$4.56. A close above that key price level would open the door to a quick challenge of technical resistance at the January high of US$4.71 1/2. Chart support for December corn is seen at US$4.39, at US$4.33 and then at US$4.25.
