March corn futures at the Chicago Board of Trade are presently trapped right in the middle of a 2.5-month-old trading range at higher levels on the daily bar chart. That trading range is bound by strong overhead technical resistance at the November high of $4.25 a bushel and by strong technical support at the November low of $3.72 1/2. The direction in which March corn “breaks out” of the aforementioned trading range on the daily bar chart will likely be the direction of the next significant price trend in the corn market.
The corn market bulls have recently gained some fresh upside technical momentum by rallying March futures prices from the December low of $3.79 and pushing and closing prices above what was major psychological resistance at the $4.00 level. March corn on Monday hit a fresh two-week high of $4.10. Near-term chart resistance for March corn futures is located at Tuesday’s overnight high of $4.08 1/2, at $4.10, at $4.12 1/2 and then at $4.15. Near-term chart support is located at $4.05, at $4.00, at $3.96 and then at $3.90. Stay tuned! Jim Wyckoff