Ag Complex Week of May 22

by | Sunday, May 21, 2017 - 2:51pm

Corn moved decisively higher during the past week, trading from 364 to 372 and became buyer controlled as the weekly candle traded north of the volume point of control. The weekly chart shows the path of least resistance of price action to be higher. The next natural points of resistance would be the highs seen in Feb and March (378-380). Momentum as shown by the 14 period RSI continued its gradual move higher.

Included this week is a new chart that shows an indicator developed by Kirk Northington, CMT, the man who wrote the book on Volatility-Based Technical Analysis. The indicator is a dynamic signal called VBSR (Volatility Based Support & Resistance). This shows support and resistance areas called N-Bands that you can count on, almost without fail, to serve as solid support and resistance areas. As we would expect, knowing that corn is trading near its VPOC level, the commodity is right in the middle of it’s N-Band Support and Resistance areas. Shown below is the second piece of the indicator which is the RRR (Risk Reward Ratio). When the red line is short, and the green line long, it tells us that it is in our best interest to be long. When the green line is short, and red long it would mean the opposite – we can expect limited upside and downside is the better bet. For several weeks the RRR Indicator has been fairly equal meaning based on this signal there isn’t a heavily skewed risk reward opportunity from the long or the short side.

In sum, I think we see Corn continue on its uptrend throughout the coming week, possibly after digesting some gains early in the week.

Support Level 1: 365
Support Level 2: 360

Resistance Level 1: 380
Resistance Level 2: 385

c2spot
daily corn futures
c2spot

Corn

C2Spot (Cmdty) – 1 Week CandleStick Chart – USD

Sunday, May 21, 2017 – 2:48pm

CORN JULY 2017

@C# (IQFeed) – 1 Day CandleStick Chart – USD — Data from IQFeed

Sunday, May 21, 2017 – 2:51pm

Corn

C2Spot (Cmdty) – 1 Week CandleStick Chart – USD

Sunday, May 21, 2017 – 2:48pm

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