CORN closes below its opening price unable to hold early session gains
Corn (CORN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CORN ended the week -1.44% lower at 377.75 after losing $1.50 (-0.4%) today. Today's close at 377.75 marks the lowest recorded closing price since January 16th. Trading $2.00 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 379.00, the contract confirmed its breakout through the prior session low after trading up to $2.75 below it intraday.
Daily Candlestick Chart (CORN as at Feb 14, 2020):
Friday's trading range has been $5.25 (1.38%), that's slightly below the last trading month's daily average range of $5.78. Weekly volatility is also lower, being way below 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 Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on February 6th, CORN gained 0.79% on the following trading day.
Prices are trading close to the key technical support level at 376.00 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 375.25, downside momentum might speed up should CORN break out to new lows for the year. Trading close to December's low at 371.00 we could see further downside momentum if potential sell stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Corn. Out of 95 times, CORN closed lower 53.68% of the time on the next trading day after the market condition occurred.
With five out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are COFFEE gaining 4.23% and CRUDE closing 1.4% higher. On the flipside the worst performers have been SUGAR closing -1.56% lower and WHEAT losing -0.05%. Read more