Time to Go Long on Corn?

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

1-2-3 Bottom Formation in Corn – almost ready to trade

Multiyear low in Corn

Monthly Corn Chart – Multiyear low in Corn

Multiyear low in Corn
Weekly Corn Chart – Multiyear low in Corn

 

Posted in Corn and tagged , , , , .

Leave a Reply

Your email address will not be published. Required fields are marked *