Corn is currently forming a bullish wedge pattern and a breakout to the upside is possible soon. Prices appear to have completed its bullish wedge pattern at 346.75 a couple of days ago.
While it is still too early to call for a low but we see that selling momentum is waning via the bullish divergences on its MACD and RSI.
Hence, a strong push above 368.50 would likely signal that a temporary low is in place and Corn could potentially rally to retest 398.50 and eventually 417.00 in the coming months.
Aggressive traders may choose to go long on weakness with a stop placed below 346.75.
If our wave count is right, a breakout from this wedge pattern could potentially take prices to 445.50, where wave c is equal in length to wave a.
The 62%FR level of 444.63 is also just nearby, making a Fibonacci cluster around the 444-446 levels.
Dropping below 346.75 would likely indicate that the wedge pattern is extending and thus delaying the next leg up for Corn. (Read Report)
Source : CIMB Research