About 17 months ago, I wrote a post about a possible top in Corn prices. The analyses was based on a Demark weekly sell set up (technical exhaustion indicator). But, let’s be honest, some of that was based on feel. Although many thought corn prices were destined to go higher, there was “herd” mentality forming that was worthy of caution.
Fast forward to today and corn prices are cut in half. Although this is unwelcome news to farmers, in a psychological sense it has worked to sideline over zealous “bulls”. As well, corn prices have landed near the .618 Fibonacci retracement level. This could work to usher in higher prices over the near-term. Or at a minimum provide lower support for a sideways price channel. See chart below.
Stay tuned. Trade safe.
No positions in any mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.