Corn futures staged a key reversal in Tuesday's after testing an important resistance level. Autochartist has been tracking the development of a large Triangle chart pattern as an emerging trade opportunity on the 240-minute time interval. The key reversal suggests it may be time for another move lower in the near term as the pattern approaches completion.
The top of the formation has a descending trend line drawn from the recent swing highs. Corn's last push higher found stiff selling pressure once again at this resistance level which held the gains at $6.40 per bushel before the reversal ensued.
The price declined to the middle of the pattern's range to settle near the $6.25 per bushel level, pointing to a likely continuation of the slide to key support offered near $6.10 per bushel. This represents the bottom of the Triangle chart pattern. A move above the previous swing high will be needed to full execute a buy signal on a technical breakout. Meanwhile, the bias of the market is for the move lower to test support. If the support level fails to hold, it will reset the long term downtrend and invite a move back into the $5.00 handle for the nearby futures. For further information on this and other Autochartist products, visit our website at www.autochartist.com
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