As you can see from on the charts below, Corn (CBOT) has made a multiyear low and is forming a 1-2-3 bottom formation, with a #1 point at 418.5 and a #2 point at 439.0 (the chart below is incorrectly labeled 436.75 for the #2 point – oops) with a possible #3 point at 430.25 on 12/6.
If the price of Corn on this March 2014 chart goes above the #2 point formed on 12/5, we will go long corn as it breaks above 439, with a target of the 50% retracement level at 468 based on the last high of 517.50 on 8/26/13 per the Daily Corn chart below.
Of course, the Corn market has the potential to retrace all the way to 564 based on the move from the high shown on the Weekly Corn chart of 717.50 during the week of 7/12/13. So there is huge upside potential with this trade.
1-2-3 Bottom Formation in Corn – almost ready to trade
Monthly Corn Chart – Multiyear low in Corn
- Weekly Corn Chart – Multiyear low in Corn