CBOT Corn futures turned to test the upside of their range in Friday's session, showing signs of strength which may portend a breakout ahead. The gains followed a retest of the key level support established by a large Pennant chart pattern. The Pennant is shown here on the Autochartist 240-minute emerging patterns platform.
The lengthy span of the Pennant chart pattern adds to its overall Quality ranking of 8 bars, as the support and resistance levels are now well established and contain the mostly sideways range of the last several weeks. The successful reversal from the $6.27 per bushel low set the price on track for a test of the upper edge of the pattern near $6.45 per bushel.
With the grain complex firming ahead of the beginning of planting season in the Northern Hemisphere, increased volatility is likely to break the range-bound trading seen lately in the grains. Corn may benefit from the increased price action, with only a modest move higher needed from here to initiate a technical rally towards a new trading range above $6.50 per bushel. A rally early in the week ahead will likely execute this price forecast on the Autochartist platform as the pattern completes.
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