Corn futures continue to bounce along key level support at the price of $5.87 per bushel. This has become a pivot point for the futures, and is identified by the Autochartist Key Level indicator showing the multiple consecutive tests preceding Friday's closing price at this level.
The series of bounces from this key level support show a fairly steady distribution of momentum buying and profit-taking retracements. As the breakout rallies gradually tested higher prices all the way up to the $6.10 level, selling pressure ensued to diminish the gains over the most recent bounces.
This indicates a possible loss of confidence in the market's ability to sustain a move above this key level and firmly above the $6.00 handle in the near term. A weaker open in Monday's session would signal a breach of the $5.87 per bushel support. This could be followed by a quick drop lower as stop-loss orders are triggered and new sellers push the price away on the confirmation of the key level failure. If this occurs, a decline to longer term support near the $5.50 per bushel level remains possible.
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