CORN dominated by bulls lifting the market higher throughout the day
Corn (CORN) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CORN finished Thursday at 393.50 gaining $4.50 (1.16%) on high volume. Today's close at 393.50 marks the highest recorded closing price since November 1, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 391.00, the market confirmed its breakout through the previous session high after trading up to $3.00 above it intraday.
Daily Candlestick Chart (CORN as at Jan 23, 2020):
Thursday's trading range has been $6.50 (1.67%), that's slightly above the last trading month's daily average range of $5.20. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CORN.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 393.75 (R1), the contract closed below it after spiking up to 394.00 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 386.75 in the prior session, CORN found buyers again around the same price level today at 387.50. The last time this happened on January 9th, CORN gained 0.85% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Corn. Out of 311 times, CORN closed lower 52.41% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.59% with an average market move of -0.20%.
With four out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are COFFEE gaining 1.02% and NATGAS closing 0.42% higher. On the flipside the worst performers have been CRUDE closing -0.68% lower and SUGAR losing -0.63%. Read more