What’s Up, What’s Down: Retracement Rally for Corn?

Comments for Wednesday, April 14, 2010

Looking Ahead to Today by Reflecting Back at Thursday’s Price Action


Higher closes Tuesday for soybeans, soymeal, soyoil, corn, Minneapolis, Kansas City and Chicago wheat while lower for rough rice and oats. All of the wheat closed higher again still in long-term downtrends but all are forming potential bottoms. There is also resistance over 490 for KC and Chicago while around 510 for Minneapolis basis the May contract. Oats settled lower still in a downtrend but has held a DOUBLE BOTTOM at contract lows so far while consolidating over the last three weeks. Rice closed lower also but still is in a small BULL PENNANT with little resistance up to around the 1400 area basis the May contract.

The trend for rice is also obviously lower long-term. Corn continued to hold the 343 1/2 area basis the May contract by settling higher again causing a failed bear pennant which should lead to a retracement rally. The key price to watch is 359 basis the May contract. The Bean complex closed higher with beans, meal and oil showing bottoming signs at this time and are near potential buy signals. The beans have been in a 925-975 trading range since the beginning of February but are now pushing the upper end of that range. BUY SIGNAL FOR ROUGH RICE. SELL SIGNALS FOR MINNEAPOLIS , KANSAS CITY AND CHICAGO WHEAT ALONG , CORN AND OATS. CALL FOR DETAILS!

Wheat Chart

Corn Chart

Read the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

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