CORN closes below its opening price unable to hold early session gains

Corn (CORN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team


CORN breaks back below 20-day moving average
CORN closes below its opening price unable to hold early session gains
CORN closes lower for the 3rd day in a row
CORN finds buyers again around 316.00
CORN stuck within tight trading range


Moving lower for the 3rd day in a row, CORN ended the week -0.63% lower at 317.50 after losing $0.50 (-0.16%) today. Trading $1.25 higher after the open, the contract was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (CORN as at May 22, 2020):

Daily technical analysis candlestick chart for Corn (CORN) as at May 22, 2020

Friday's trading range has been $3.00 (0.94%), that's far below the last trading month's daily average range of $5.70. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CORN. Prices continued to consolidate within a tight trading range between 316.00 and 321.50 where it has been caught now for the last three trading days.

One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.

The market closed back below the 20-day moving average at 317.66 for the first time since May 14th. After having been unable to move lower than 316.25 in the prior session, CORN found buyers again around the same price level today at 316.00. The last time this happened on May 11th, CORN gained 1.42% on the following trading day.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Selling might accelerate should prices move below the close-by swing low at 315.50 where further sell stops could get activated. With prices trading close to this year's low at 309.00, downside momentum might speed up should the contract break out to new lows for the year. As prices are trading close to May's low at 312.25, downside momentum could accelerate should the market mark new lows for the month.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for Corn. Out of 734 times, CORN closed lower 50.82% 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 52.59% with an average market move of -0.16%.

With four out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are WHEAT losing -1.36% and COFFEE closing -1.1% lower. On the flipside the best performers have been NATGAS closing 1.5% higher and SILVER gaining 1.4%. Read more

Market Conditions for CORN as at May 22, 2020

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