September corn (ZCU26) futures present a “swing trade” buying opportunity on fresh price strength.
See on the daily bar chart for September corn futures that the recent selloff has pushed prices into the lower boundary of a well-defined trading range. It’s my bias that solid technical support at the April low will provide a floor under prices and that prices will rebound at some point soon.
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Fundamentally, the global and domestic supply and demand balance sheet for corn is bullish. U.S. corn exports have been solid in recent months. Also, more years than not a weather-market scare quickly pops up in the corn market in the summertime, to boost prices.
A move in September corn futures prices above chart resistance at $4.65 would become a “swing-trade” buying opportunity. The upside price objective would be $4.92, or above. Technical support, for which to place a protective sell stop just below, is located at the April low of $4.53 3/4. For more details on swing trading, send me an email at jim@jimwyckoff.com and I will provide you with a story I wrote on the subject.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com