March corn futures at the Chicago Board of Trade have seen choppy and non-trending price action the past two weeks. However, trend-line analysis suggests the next two trading days (Thursday and Friday) could be extra important for price action in corn in the coming few weeks. The daily bar chart for March corn futures shows that an uptrend line can be drawn from the December and January lows. However, a downtrend line can also be drawn from the highs seen last summer, last autumn and the January high. One of these trend lines will likely be penetrated in the next two or three days.
The direction in which March corn pushes out of the present wedge pattern on the daily chart is very likely to be the direction of the next significant near-term price trend in the market. Key near-term technical support for March corn is located at last week’s low of $3.58 3/4. Key overhead technical and psychological resistance is located at $4.00 a bushel.–Stay tuned! Jim Wyckoff