Corn futures are once again retesting the top end of a major trading range at mid-week, with the possibility of a breakout ahead of bullish weather forecasts going into the weekend. Corn has been marking time in a broad sideways range as critical development of the US crop progresses, with traders looking at technicals for guidance on long terms direction.
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The sideways price action has consolidated the market into a large Flag chart pattern illustrated here on the 240-minute time interval. This pattern has confined all of the recent trading range despite significant intra-day volatility. Wednesday's large range and higher close places the price close to the upper boundary of the Flag formation, allowing for a potential rally above $6.91 per bushel to initiate a technical breakout.

If the rally continues, the move into the $7.00 handle could have dramatic follow-through given the crucial time period for this summer's growing season. Failure for this price swing to move above the resistance provided would suggest a continuation of the Flag chart pattern, with a probable retest of the lower boundary near $6.70 per bushel.

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