The Corn (maize) is thriving this summer, rising quite dramatic, first joint with that of Wheat (wheat), then alone. For the past several weeks, however, movements are much reduced amplitude, and it will be a landmark event sufficient to break the deadlock, just like in the case of the futures contract on wheat raised yesterday evening. Maybe he should wait for that the USDA report next November 9, or any unpleasant surprises in the Midwest climate rich cultures.
It is important to note that USDA has reduced its crop forecasts, expected down 3.4% compared to 2009, while inventories are at their lowest since 13 years in the U.S..
 |
| Corn Futures (December 2010), 10/27/2010 (Daily) |
The trend is still upward, since the courses are widely above the trendline MT growth and major moving averages. I notice all the same output overbought zone. In the short term, the situation is completely blocked, there is still bleak plain boredom of the trader, the fruitless wait ... But the wait lasts longer, plus the next move is likely to be powerful.
 |
| Corn Futures (December 2010), 10/27/2010 (H4) |
indicators are totally flat, and reflect the current phase of hesitation in the market. One thing is certain, this pause is needed.
The current consolidation if it were to continue would not necessarily very good sign, from a bullish perspective. I do not like
take buy position in a movement already well advanced, and at historically high (it is only in 2008 that prices were higher than they are today ). But I am very willing to buy a bullish franc which would exceed the $ 588 resistance. In this case, I'm positive on the contract with the area of $ 600-605 to achieve in the immediate future. If buyers are able to push prices beyond, we could see a new bullish leg should take us much higher. But for that, no secrets, it will take a real change in market conditions.
I have no short position planned for now, contrary to the contract for December Wheat.
Have a Good Trading Session.
0 comments:
Post a Comment