Corn futures have successfully completed another down leg inside of a Triangle chart pattern, illustrated here on the Autochartist platform's 240-minute time interval. As the price consolidates within the narrowing apex of this pattern, expectations of a breakout in the near term increase.
Monday's session saw a minor pullback on the price to briefly touch the rising support trend line at $6.48 per bushel. The price settled higher back inside the pattern, and should now either make a decisive breakout to the downside or else rally back to test the resistance at $6.55 per bushel. Choppy intra-day trading has diminished the Clarity and Uniformity rankings for the pattern to give it an overall Quality of 5 bars. However the boundaries of the triangle are clearly defined and should provide useful chart points for detecting a breakout.
A move below the $6.45 level will produce a downside forecast for a short tern sell-off. A rally back above the $6.60 level would be needed to generate a reversal signal with a higher projected price target. In either case, the price is fast approaching the termination of this pattern and a meaningful directional move may be imminent.
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