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 $3.29 1/2, up 2 1/2 cents for the week. Despite the higher weekly close the secondary (intermediate-term) trend remains down following the previous week's bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is at $3.17 3/4, a price that marks the 33% retracement level of the previous uptrend from $2.85 1/4 through the recent high of $3.34 (weekly close only). The 50% retracement level is down at $3.09 1/2.

Corn (Old-crop Futures): The March contract closed 2.75cts higher at $3.65 1/4. Weekly stochastics continue to indicate the secondary (intermediate-term) trend is up. Initial resistance is at $3.67 3/4, a price that marks the 33% retracement level of the previous downtrend from $4.53 1/4 through the low of $3.25, then the 50% retracement level of $3.89 1/4.

Corn (New-crop Futures): The December 2017 contract closed 3.50cts higher at $3.92 3/4. The contract came within a 1/4 cent of posting a bullish outside range last week, indicating its secondary (intermediate-term) trend remains up. The upside target is still $3.98 1/4, just above the last three weekly highs of $3.96 1/4, $3.96 3/4, and $3.96 3/4. Beyond that the target is $4.07 1/2, a price that marks the 50% retracement level of the previous downtrend from $4.22 3/4 through the low of $3.58 1/2. Weekly stochastics are bullish but nearing the overbought level of 80%.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.51 1/2, down 21 1/2 cents for the week. Cash soybeans now look to be in a sideways secondary (intermediate-term) trend due to its strengthening minor (short-term) downtrend. The NSI.X looks to have moved into Wave C (third wave) of a three-wave downtrend with targets near $9.38 3/4 and $9.24 1/2. These prices mark the 50% and 61.8% retracement levels of the previous uptrend from $8.77 3/4 through the high of $10.00. Daily stochastics are nearing the oversold level of 20%, setting the stage for a bullish crossover in the near future.

Soybeans (Old-crop Futures): The March contract closed at $10.27, down 22 1/4 cents for the week. The secondary (intermediate-term) trend has turned sideways, influenced by the strengthening minor (short-term) downtrend. With daily (short-term) stochastics still bearish the contract could extend its minor trend to a target near $10.13 1/4. This price marks the 76.4% retracement level of the previous uptrend from $9.92 3/4 (January 4) through the high of $10.80 (January 18).

Soybeans (New-crop Futures): The November 2017 contract closed at $10.09 3/4, down 15 1/2 cents for the week. The contract remains in a secondary (intermediate-term) 3-Wave downtrend, with Wave C (third wave) targeting support at $9.81, then $9.50. These price mark the 33% and 50% retracement levels respectively of the previous uptrend from $8.57 through the high of $10.43.

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