July Corn Futures Are Hinting at Underlying Strength and More Upside Ahead. Here Are the Levels to Watch Before You Buy.

Jim Wyckoff Barchart Tue Apr 1, 9:10AM CDT
Partially husked corn - by Couleur via Pixabay

July corn futures (ZCN25) present a buying opportunity on more price strength. 

See on the daily bar chart for July corn futures that prices have seen a solid rebound from the March low, which has formed a bullish double-bottom reversal pattern. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the red MACD line is above the blue trigger line and both lines are trending up.

Importantly, the corn market got a bearish USDA planting intentions report on Monday, yet prices rallied in the aftermath of the report. When a market rallies on bearish news, that’s a solid sign of underlying price strength and indicates that more upside is likely. Also, there is early talk that the eastern Corn Belt is seeing wet conditions with more precipitation in the forecast, which could prompt corn-planting delays.

A move in July corn futures prices above chart resistance at $4.70 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be $5.05 or above. Technical support, for which to place a protective sell stop just below, is located at $4.55. 

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IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you. 


On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.