Corn futures slipped lower in Friday's trading session, to close below the support level provided by a large Channel Up chart pattern and initiate a downside technical breakout. The Channel Up pattern has been holding the market in a mostly sideways range between $6.70 and $6.90 per bushel as speculators wait out the near-term weather and look for clues to which way the longer term trend shift will go.
Friday's breakout to the downside hints at a move lower from here, as the length of the pattern has made it a formidable support level on the chart. The breach of the $6.70 price came on strong momentum, with strong follow-through selling and only a modest bounce at the close.
The forecast projects a lower price range between $6.56 and $6.44 per bushel, a move which could unfold during Monday's session. This move lower would measure as a definitive new leg lower in the ongoing correction for the corn market, and may encourage heavy selling in the face of harvest pressure as the growing season comes to completion.
A reversal in price to begin the week, which could occur on bullish weather forecasts, would have to move the price back into the Channel Up chart pattern with a close above $6.75 to negate this bearish pattern and resume the neutral trend.
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