Corn Update August 2015 (M)
Created on Thursday, 27 August 2015 08:48
Written by Austin Galt
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.