Corn Update August 2015 (M)

Corn has traded as laid out in previous analysis by testing the recent lows and is now at a critical juncture. I favour price rallying from here but that depends on some key support holding. Let’s take a look at the monthly chart.
 

CORN MONTHLY CHART 

The key support I am referring to is the monthly PSAR indicator support denoted by the dots. This currently stands at $337 and will likely be around $342 in September. Breaking that support may very well see price crack to new yearly lows below $318.
 
The Bollinger Bands show price currently milling around the middle band which is a key support area. Breaking monthly PSAR support now would surely see price hit the lower band at $326.
 
The RSI shows a bullish divergence in place and a new low now would likely set up a triple bullish divergence.
 
The long term view outlined in February 2015 calls for a final bear market low down below $250 but the expectation remains of a significant bear rally before then.
 
 

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Disclaimer

All information contained in this website is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Put simply, it is JUST MY OPINION.

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