Corn sold off after a USDA crop report in January that sent grains in general falling. The downtrend has lasted for a while, and now the price has made a double-bottom and broken above its recent trading range. This provides an entry point. February’s report was similarly bearish, but with some modest improvements. I suspect the bad news may now be in the price, and have initiated a long position. It helps that corn is around what looks like a long-term support (formerly resistance) level, as shown on the last chart (from prorealtime.com). The first chart, from IG Index, shows approx entry point and stop position.

Advertisements