CORN Technical Analysis | CORN Trading: 2019-06-27 | IFCM UAE
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CORN Technical Analysis - CORN Trading: 2019-06-27

Drier weather bearish for corn prices

Drier weather across US Corn Belt this week will allow more planting of corn. Will the corn prices continue declining?

National Oceanic and Atmospheric Administration forecasts relatively drier conditions this week through July 2 across the upper Midwest and Corn Belt of US. Drier weather, which allows to plant more area when rains delayed plantings, is bearish for corn prices. At the same time the United States Department of Agriculture is expected to revise downward its estimate of corn planting area in annual acreage report due on Friday. This is an upside risk for corn.

CORN is retracing from 5-year high    06/27/2019 Technical Analysis IFC Markets chart

On the daily timeframe the CORN: D1 is retracing lower after hitting 5-year high in mid-June.

  • The Parabolic indicator gives a buy signal.
  • The Donchian channel indicates uptrend: it is narrowing up.
  • The MACD indicator gives a bearish signal: it is above the signal line and the gap is narrowing.
  • The Stochastic oscillator is falling but has not reached the oversold zone.

We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 441.30. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the upper Donchian boundary at 467.40. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (467.40) without reaching the order (441.30), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

OrderSell
Sell stop Below 441.30
Stop loss Above 467.40

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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