Corn Bulls Still Have Some Upside Technical Momentum

December 2010, Corn futuresDecember corn futures at the Chicago Board of Trade on Monday morning were under some modest profit-taking pressure from recent gains that on Friday saw prices hit a fresh two-month high of $3.98 a bushel. The corn market bulls do still have some near-term upside technical momentum as December futures prices have rallied around 50 cents a bushel from the contract low of $3.43 1/4 that was scored on June 29.
The next major upside price objective for the corn market bulls is to produce a close in December futures prices above major psychological resistance at $4.00 a bushel. A daily close above the key $4.00 mark would then open the door to a challenge of strong technical resistance at the March high of $4.15 1/2. Above that level lies solid chart resistance at the $4.25 mark, basis December futures. The corn market bears would begin to gain some fresh near-term downside technical momentum by producing a close in December futures below chart support at last week’s low of $3.78 1/2. Below that lies solid chart support at the $3.70 level. Stay tuned! Jim Wyckoff