US grain market review: global markets begin to rally

Despite a marked drop in grain futures predictions at the start of the week, global stock markets now begin to rally as the coronavirus media storm dies down.

6 February 2020

4 minute read

By: Jim Wyckoff

North America

Choppy price action recently

The direction in which prices push above or below the resistance or support lines will very likely be the next longer-term price trend for corn futures. © Jim Wyckoff

Longer-term price uptrend recently negated to suggest a choppy and sideways trading range at least into springtime

Prices in longer-term uptrend but rally stopped right at the 2018 high, suggesting the $5.93 area will be very strong longer-term chart resistance to overcome in the coming weeks

Recent sideways price action favours the bulls

Move below chart support at $3.75 1/4 would produce chart damage to suggest lower prices, still. Move above chart resistance at $3.94 would give bulls fresh power to suggest a price uptrend can be sustained at least into springtime. © Jim Wyckoff

Market has become oversold and due for a recovery

See that RSI has produced bullish double-bottom reversal, suggesting the market has put in a low. © Jim Wyckoff

Price uptrend in place and bulls still have firm overall near-term technical advantage

However, there is strong resistance at the January high of $5.92. © Jim Wyckoff