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 $3.31 3/4, down 5 3/4 cents for the week. Last week's lower close established another bearish crossover above the overbought level of 80% by weekly stochastics, again indicating a move to a possible secondary (intermediate-term) downtrend. The NCI.X remains priced between resistance at $3.29 1/4 and $3.42 3/4, prices that mark the 38.2% and 50% retracement levels of the previous secondary downtrend between $4.00 1/2 and $2.85 1/4.

Corn (Old-crop Futures): The May contract closed 6.50cts lower at $3.75 1/2. Unlike the NCI.X, the lower close by May futures did not establish a bearish crossover above the overbought level of 80% indicating the secondary (intermediate-term) trend remains up for now. Next resistance is at $3.93 3/4, a price that marks the 50$ retracement level of the previous downtrend from $4.55 through the low of $3.32 1/2.

Corn (New-crop Futures): The December 2017 contract closed 5.00cts lower at $3.94 1/4. Despite the lower weekly close the secondary (intermediate-term) trend remains up. However the contract continues to find resistance between $3.98 1/4 and $4.01 1/4, prices that mark the 61.8% and 67% retracement levels of the previous downtrend from $4.22 3/4 through the low of $3.58 1/2. The contract's major (long-term) trend remains up on its monthly chart, with initial resistance pegged at $4.02, then $4.16.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.58 3/4, down 24 1/2 cents for the week. The NSI.X looks to be in a secondary (intermediate-term) sideways trend on its weekly close chart, ranging between the high weekly close of $9.91 (week of January 17) and low weekly close of $9.51 1/4 (week of January 30). Weekly stochastics remain neutral below the overbought level of 80%.

Soybeans (Old-crop Futures): The May contract closed at $10.43 1/4, down 26 3/4 cents for the week. Old-crop futures still look to be in a secondary (intermediate-term) sideways trend between the recent high of $10.88 1/4 and low of $10.27. Weekly stochastics remain neutral below the overbought level of 80%.

Soybeans (New-crop Futures): The November 2017 contract closed at $10.18 1/4, down 11 3/4 cents for the week. The prevailing secondary (intermediate-term) trend remains down with the last signal by weekly stochastics a bearish crossover above the overbought level of 80% (week of November 28, 2016). The recent rally off support at $9.81 to test trendline resistance near $10.29 looks to be Wave B (second wave) of a normal 3-wave downtrend. If so the next target is still $9.50, a price that marks the 50% retracement level of the previous uptrend from $8.57 through the high of $10.43.

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