Corn Technical Analysis Summary
Buy Stop։ Above 777.7
Stop Loss: Below 700
Corn Chart Analysis
Corn Technical Analysis
On the daily timeframe, CORN: D1 has moved up from the neutral range. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if CORN: D1 rises above its latest high, the upper Bollinger band and the high since September 2012: 777.7. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, the lower Bollinger band and the last lower fractal: 700. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we are changing the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (700) without activating the order (777.7), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities – Corn
The US President Joe Biden is going to allow the production and sale of biofuels in the summer. Will the CORN quotes continue to rise?
The US authorities may allow the year-round sale of E15 gasoline, which contains 15% bioethanol. Previously, it was limited from June 1 to September 15 in order to reduce the likelihood of smog in hot weather. The main raw material for the production of bioethanol in the United States is corn. Joe Biden’s proposal is designed to lower gasoline prices amid a 40-year inflation high of 8.5% y/y in March. Recall that on November 8, 2022, midterm elections will be held in the United States House of Representatives (lower house of the United States Congress). Against this background, the US authorities may be interested in stable prices for motor fuel in the country. An additional positive for corn quotes may be the risks of reducing its exports from Ukraine and Russia, as well as from Argentina, where the strike of truck drivers continues.