November 19, 2009
Technical Special: Corn bulls in control, but resistance above
March corn futures at the Chicago Board of Trade on Wednesday (November 18) hit a fresh four-week high. Prices are presently in a 10-week-old uptrend on the daily bar chart and the bulls have recently gained fresh upside technical momentum.
Price action Tuesday and Wednesday saw March corn prices push above a key 61.8 percent Fibonacci retracement level of the price move from the June high of US$4.83 to the September contract low of US$3.15 1/2, which is another bullish technical clue. That retracement level is located at US$4.19.
There is now strong overhead chart resistance located at the October high of US$4.24 1/2. A close in March corn above this key price level would provide the bulls with another power boost to then suggest a challenge of longer-term technical resistance at the $4.50 price level.
Multiple closes below major psychological support at US$4.00 a bushel in March corn futures would provide the bears with some fresh downside technical momentum to suggest a market top is in place.
