November 7, 2008
CBOT corn bears regain chart power
December corn futures at the Chicago Board of Trade on Thursday slumped to a fresh two-week low of US$3.78 a bushel.
Prices have backed well down from this week's high of US$4.22, and the bears have regained downside near-term technical momentum.
December corn futures remain in a 4.5-month-old downtrend on the daily bar chart, as prices have declined more than 50 percent from the late-June contract and all-time high of US$7.99 1/4 a bushel.
The next downside price objective for the rejuvenated bears is to produce a close below strong technical support at the October low of US$3.64, basis December corn futures. Below that lies chart support at the US$3.50 level.
Overhead chart resistance for December corn is located at Thursday's high of US$4.91 1/2 and then at US$4.00. It would take a close above strong chart resistance at last week's high of US$4.33 to provide the bulls with fresh upside near-term technical momentum to suggest that a fresh uptrend in prices can be sustained.