May corn futures at the Chicago Board of Trade on Monday scored a fresh contract high of $7.56 3/4 as of this writing. Corn futures prices now stand at nearly three-year highs. May corn futures prices have rallied nearly $1.00 a bushel since last week’s bullish USDA report. The corn market bulls have gained strong upside near-term technical momentum recently and there are no early technical clues to suggest a market top is close at hand. The next upside technical price objective for the corn bulls is to push nearby futures prices above chart resistance at the all-time high of $7.79 a bushel, basis nearby futures, scored in June of 2008. Above that lies major psychological resistance at $8.00. The next downside technical target for the corn market bears is filling on the downside last week’s big upside price gap on the daily bar chart in May corn futures. That means pushing prices down to $6.93 1/4, which is the bottom of the price gap. Near-term chart resistance for May corn futures is located at Monday’s contract high of $7.56 3/4, at $7.60, $7.65, $7.70 and then at $7.75. Near-term technical support is located at $7.44 1/4, at $7.40, Monday’s low of $7.34 and then at $7.25, which is the top of last week’s big upside price gap on the daily chart. Stay tuned!–Jim Wyckoff
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