CORN closes higher for the 2nd day in a row
Corn (CORN) Technical Analysis Report for Jul 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CORN finished Thursday at 444.00 gaining $10.00 (2.3%). Trading up to $7.75 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 436.50, the contract confirmed its breakout through the prior session high after trading up to $8.25 above it intraday.
Daily Candlestick Chart (CORN as at Jul 11, 2019):
Thursday's trading range has been $18.25 (4.2%), that's above the last trading month's daily average range of $13.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CORN. Prices continued to consolidate within a tight trading range between 426.50 and 445.25 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
CORN managed to close back above the 20-day moving average at 442.74 for the first time since June 27th. After having been unable to move lower than 427.00 in the previous session, the market found buyers again around the same price level today at 426.50. The last time this happened on July 2nd, CORN gained 3.93% on the following trading day.
While the contract is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 445.25 where further buy stops might get activated.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for Corn. Out of 28 times, CORN closed higher 60.71% of the time on the next trading day after the market condition occurred.
With four out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are GOLD losing -1.03% and NATGAS closing -0.96% lower. On the flipside the best performers have been WHEAT closing 3.09% higher and COFFEE gaining 0.87%. Read more