Technically Speaking

Weekly Analysis: Corn and Soybean Markets

Darin Newsom
By  Darin Newsom , DTN Senior Analyst
Connect with Darin:
Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.11 1/2, up 3 1/2 cents for the week. The NCI.X remains in a secondary (intermediate-term) uptrend on its weekly close-only chart. Initial resistance is at $3.13, a price that marks the 23.6% retracement level of the previous downtrend from $3.48 (week of June 5) through the low of $4.02 (week of August 21). Next resistance is between the 38.2% and 50% retracement levels of $3.19 3/4 and $3.25.

Corn (Old-crop Futures): The December 2017 contract closed 1.50cts higher at $3.56 3/4. The secondary (intermediate-term) trend now looks to be up following a bullish crossover by weekly stochastics below the oversold level of 20% last week. The contract is already testing initial resistance at $3.62 3/4, the 23.6% retracement level of the previous downtrend from $4.22 3/4 through the low of $3.44 1/4. Next resistance is between $3.74 1/4 and $3.83 1/2.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

Corn (New-crop Futures): The December 2018 contract closed 1.50cts higher at $3.98. Unlike the December 2017 futures contract, Dec 18 did not post bullish technical signals at the end of last week indicating the secondary (intermediate-term) trend is still down. However, if Dec 2017 rallies it would likely pull the 2018 contract higher as well.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.97 3/4, up 11 3/4 cents for the week. The market's secondary (intermediate-term) trend remains up. Next resistance on the market's weekly close-only chart is the high of $9.46 (week of July 17). Beyond that the next wave (wave 3 of 5) should peak near $9.76, the 50% retracement level of the previous downtrend from $11.12 through the low $8.40.

Soybeans (Old-crop Futures): The November 2017 contract closed at $9.62, up 12 1/2 cents for the week. The contract remains in a standard 5-wave secondary (intermediate-term) uptrend. Theoretically the peak of the next wave, Wave 3, should occur above the Wave 1 high of $10.47.

Soybeans (New-crop Futures): The November 2018 contract closed at $9.81, up 8 1/2 cents for the week. The contract remains in a standard 5-wave secondary (intermediate-term) uptrend. Theoretically the peak of the next wave, Wave 3, should occur above the Wave 1 high of $10.28 3/4.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

Comments

To comment, please Log In or Join our Community .

John Michael Pillow
9/17/2017 | 6:45 PM CDT
Darin, You have mentioned the wave theory in regarding SX17 on multiple occasions. It would be incredibly helpful if you could demonstrate this in a chart. Thanks. John Pillow