Technically Speaking

Weekly Analysis: Corn and Soybean Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.34, up 10 1/2 cents for the week. The secondary (intermediate-term) uptrend continues to strengthen with next resistance pegged at $3.42 3/4. This price marks the 50% retracement level of the previous downtrend from $4.00 1/2 through the low of $2.85 1/4. Weekly stochastics are above the overbought level of 80%, possibly limiting an extension of the trend beyond next resistance.

Corn (Old-crop Futures): The March contract closed 11.25cts higher at $3.69 3/4. The secondary (intermediate-term) trend turned up last week after the contract finally broke out of its sideways trend between approximately $3.47 and $3.67. Flipping that range (20 cents) puts the next upside target near $3.87. Retracement resistance is pegged at $3.89 1/4, the 50% level of the previous downtrend from $4.53 1/4 through the low of $3.25. Weekly stochastics are bullish below the overbought level of 80%.

Corn (New-crop Futures): The December 2017 contract closed 9.50cts higher at $3.95 3/4. The secondary (intermediate-term) trend turned up last week as the contract broke out if its sideways range between roughly $3.75 and $3.95. Similar to the March, flipping this range (20 cents) puts the next target at $4.15. Next retracement resistance is at $4.07 1/2, the 76.4% level of the previous downtrend from $4.22 3/4 through the low of $3.58 1/2. Weekly stochastics are bullish below the overbought level of 80%.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.91, up 17 1/4 cents for the week. The market's secondary (intermediate-term) trend remains up with next resistance on its weekly close only chart at $10.01 1/4. This price marks the 50% retracement level of the previous downtrend from $11.12 through the low of $8.90 1/2. Weekly stochastics are bullish below the overbought level of 80%.

Soybeans (Old-crop Futures): The March contract closed at $10.67 1/2, up 21 1/4 cents for the week. The contract remains in a secondary uptrend, testing resistance between $10.69 3/4 and $10.89 (last week's high was $10.80). These prices mark the 67% and 76.4% retracement levels of the previous downtrend from $11.35 1/2 through the low of $9.38. Weekly stochastics are bullish below the overbought level of 80%.

Soybeans (New-crop Futures): The November 2017 contract closed at $10.28 3/4, up 10 1/4 cents for the week. While the contract remains in a secondary (intermediate-term) 3-Wave downtrend, the minor (short-term) uptrend has led to a 76.4% Wave 2 retracement of Wave 1. Daily stochastics over overbought, indicating the minor uptrend may be nearing its end. If so Wave 3 would begin with a target down at $9.50.

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