Corn
(ZCK24)
May
This week's ONE44 Grain/Livestock Corn update is below.
First we need to go over how we got here and what we were looking for.
In our 2/22/24 update we said this for Corn,
Any attempt to rally since 10/19/23 has either been stopped by a retracement, or major Gann square, or both as it moved down from one major Gann square to the next. The 425.25 level is a 78.6% retracement and a major gann square.
We think this is an area that can produce the next substantial rally, (something we haven't seen in a while). Since the March contract is also the nearby contract we have to watch the same level on the Nearby Continuation Chart as well. The 78.6% level is 410.00, so it is possible that it trades down to this area, provided it does, we would want to see it get right back above 425.25 to keep the idea of a rally intact.
May still has more to go to get to the long term 78.6% level below at 410.00. It closed below the 442.75 major Gann square and swing point for the week.
Above it, the best scenario for a good rally would be to trade down to 410.00 and close back above 419.75.
Then in the 2/29/24 update we said,
It traded down to 410.00 and closed above the 419.75 major Gann square on Monday. This is an important level that we think can be the start of a good rally.
Use 410.00 as the swing point for the week.
Above it, the long term target is the long term swing point at 515.00, this is 38.2% back to the contract high. The short term target is 23.6% of the same move at 475.00. Any rally that can't get above 38.2% back to the 10/20/23 high at 455.00 is a negative sign and new lows can follow.
NOW
As you can see in the updates we posted and emailed to our subscribers, it has now rallied 30 cents after hitting 410.00 (78.6%) and closing back above the 419.75 major Gann square, starting what we believe can be the base of the next big move higher.
*We always watch all the retracements on every move to see just how weak, or strong the market is regardless of the longer term targets and that is why we say this,
Provided there is a rally from this area the first show of strength will be when it starts to hold 23.6%, or 38.2% on setbacks, just as the highs on the way down stopped at retracements on any rally attempts. When this does happen we will know the trend is changing.
3/7/24 Update For May Corn
May
From last week,
It traded down to 410.00 and closed above the 419.75 major Gann square on Monday. This is an important level that we think can be the start of a good rally.
Use 410.00 as the swing point for the week.
The rally continued from 410.00, this was 78.6% on the continuation chart and we think this could be the base for a spring rally and possibly more.
Use 410.00 as the swing point for the week again.
Above it, the long term target is the long term swing point at 515.00, this is 38.2% back to the contract high. The short term target is 23.6% of the same move at 475.00. Any rally that can't get above 38.2% back to the 10/20/23 high at 455.00 is a negative sign and new lows can follow.
Below it, on a setback from today's high look for the 419.75 major Gann square. A failure to turn higher from 410.00 will give us only major Gann squares to watch for support, the next two are 398.50 and 379.75.
This still remains important and we will start to run the retracements below when it can hit the first key resistance of 455.00.
Provided there is a rally from this area the first show of strength will be when it starts to hold 23.6%, or 38.2% on setbacks, just as the highs on the way down stopped at retracements on any rally attempts. When this does happen we will know the trend is changing.
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