Corn has dropped below the 100, 20, and 9-week simple moving averages, all of which have rolled over to have negative slopes. The most notable is the 100sma. When it has a positive slope, it appears to act as support, but once the slope turns negative, price can go vertically down as it did in 2013. Another noteworthy item is the 45 week time span from peak to drop in 2012/2013. The current distance from the 2022 peak is 49 weeks, a time span which is comparable to 45 weeks for technical analysis purposes.
As a swing trade, a short entry should be executed as soon as possible, a stop should be placed above last week's high, and the target is near the bottom of the previous vertical drop, in the $4.50 to $5.00 range. MACD is used to colorize the bars. It’s also worth noting that the daily chart has its own bearish setup, with price having just rejected the 200, 100, 50, and 9 moving averages simultaneously. They also have negative slopes.
Daily:
Comparing May (left) and December (right) price action for 2023, it can be observed that the December contract appears to be showing more weakness which would suggest longer-term bearish expectations are starting to be priced in.
P.S. The level we're at is the same level that it dropped vertically from last time.
As a swing trade, a short entry should be executed as soon as possible, a stop should be placed above last week's high, and the target is near the bottom of the previous vertical drop, in the $4.50 to $5.00 range. MACD is used to colorize the bars. It’s also worth noting that the daily chart has its own bearish setup, with price having just rejected the 200, 100, 50, and 9 moving averages simultaneously. They also have negative slopes.
Daily:
Comparing May (left) and December (right) price action for 2023, it can be observed that the December contract appears to be showing more weakness which would suggest longer-term bearish expectations are starting to be priced in.
P.S. The level we're at is the same level that it dropped vertically from last time.