Corn futures are on track to test the $7 per bushel level, once entering territory not seen since the 2008 surge in the grain markets. Mid-week trading action in the corn pit has set a moderately bullish tone, with strength across the grains helping boost speculative buying into the new highs.
The longer term price movements in Corn have been developing a Rising Wedge chart pattern, shown here on a 240-minute time interval. Wednesday's trading saw a very soft breach of the upper band of the Rising Wedge, triggering a Breakout signal on low momentum.
Another up day for the market will add a great deal of confidence regarding the strength of the breakout, with confirmation of the initial failure of resistance being a key factor to move to the higher trading level projected.
If successful, the price forecast projects Corn futures can reach a minimum of $6.80 per bushel, with a the upper target of $6.92 possible. If the upper end is reached, watch for the likelihood for new upside projections, as this could very well represent the initial leg of a retest of the 2008 highs near $8.00 per bushel.
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