July corn futures at the Chicago Board of Trade on Monday morning were seeing a strong rebound from recent selling pressure that last week drove prices to a two-month low of $6.59 a bushel. Short covering and some bargain-hunting buying were featured. While the bulls on Monday have regained some fresh upside near-term technical momentum, they have some more heavy lifting to do in the near term to suggest an uptrend prices can be re-established. The daily bar chart for July corn futures shows prices are still in a five-week-old downtrend from the April 11 contract and all-time high of $7.88 3/4 a bushel. It will take a move in July corn futures prices back above the last “reaction high” on the daily chart, located at last week’s high of $7.23 3/4, to negate the aforementioned downtrend and provide the bulls with better upside technical momentum. Near-term technical support for July corn is located at $6.95, at Monday’s low of $6.88 3/4, at $6.85 and then at $6.80. Near-term chart resistance is located at Monday’s high of $7.06 1/4, at $7.10, $7.12 1/2 and then at $7.15. Stay tuned! Jim Wyckoff
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