4 Reasons Why Corn Could Get Cheaper Still
- Posted by Greg Harmon
- on August 13th, 2013
Corn had a long bull run higher through out 2010 and 2011, more than doubling. It has bounced around a bit since then, making a higher high, but recently making a lower low, and changing the long term trend. But with Corn ($ZC_F, $CORN) off more than 45% since the high, can it still go lower? Several signs suggest yes.
The chart above shows that there are at least 4 signs that point lower. The bullish Shark Harmonic pattern would not complete until 411, 15% lower. The next major Fibonacci retracement level at 78.6% does not come until 445 with the 88.6% level at 394 below that. The last cluster of previous price history is lower between 335 and 420. The MACD is continuing lower on the signal line. In fact the only sign that makes one optimistic for a bounce is that the RSI is technically oversold and starting to turn higher. With the weekly chart closing outside of the Bollinger bands for the last 4 weeks, a consolidation or bounce higher becomes more likely. But the other signals have you lean toward consolidation, working off the oversold with sideways action in price.
Join the Dragonfly Capital Views Premium Membership
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through July 2013 Expiry and sign up here
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Weekend Macro Roundup
- Top Trade Ideas for the Week of September 2, 2014: Bonus Idea
- Top Trade Ideas for the Week of September 2, 2014: The Rest
- Top Trade Ideas for the Week of September 2, 2014: The Rest Premium
- Top Trade Ideas for the Week of September 2, 2014: The Best
- Should Trading and Investing Really Not be Fun?
- SPY Trends and Influencers: Monthly Edition August into September 2014
- SPY Trends and Influencers August 30, 2014
- Macro Month in Review/Preview August into September 2014
- Macro Week in Review/Preview August 29, 2014