A choppy and volatile month of January is drawing to a close on a slight bullish note for the grain futures markets. Led by strength in the corn futures, the broader complex turned higher in what appears to be an effort to cement the month's sell-off as a long-term swing low. Corn pushed back above the $6.40 per bushel level to confirm the modest breakout spotted here by Autochartist.
This breakout from the apex of a Triangle chart pattern shows up on the 30-minute completed patterns platform. Ranking well with an overall Quality of 7 bars, the pattern clearly captures the sideways range that contained the price prior to Friday's breakout. Though the breakout itself occurred on a low momentum reading of only two bars, the trend line support beneath the market is encouraging for a continuation of the rally.
The projected price target calls for a move to between $6.44 and $6.51 per bushel. A weaker open on Monday with a retracement back below the Triangle support at $6.35 per bushel would negate the buy signal and do some technical damage to the longer term chart. For further information on this and other Autochartist products, visit our website at www.autochartist.com
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