You're probably wondering what's going on in the corn market today. Let me give you a look at our work.
This is the 60-minute chart, and I want to show you what we've been saying and watching. But first, remember that past results are not indicative of future results. Always consider this carefully before trading.
Now, people like it when somebody just puts it out there, so that's exactly what I'm going to do.
Let's take you back to the August low. Those who receive our newsletter know that we had a successful Wave 3 count, with our measured move theory pointing toward $5.48¾. The actual high came in at $5.49¾, nearly matching our target.
From there, we were looking for a correction.
Here's what happened next. In our work, we identified an A-wave decline down to a 25% retracement, followed by a B-wave rally. Then came the WASDE crop report, which pushed the market right back down to that same 25% retracement level, measured from the August low to the September high.
Now, here's something interesting for those of you with charting capabilities.
The first moving average is a 23-period exponential moving average on the one-hour chart, which gives us a relatively smooth look at the market. The blue line represents the 75-period exponential moving average.
Notice how these two have worked together. They never crossed over to give us a bearish signal.
So, what are our expectations moving forward?
Following what we believe was a Wave 2 correction on Friday, our work suggests we're now entering Wave 3. Based on our measured move theory, that could take corn back up to challenge the $5.49¾ high.
We could see a little stall at that level, followed by a Wave 4 setback.
And remember, this is happening during harvest! Isn't that something? That's how bullish this market looks in our work.
From there, we could potentially begin Wave 5 heading into the September 30 Grain Stocks report, with the possibility of additional support if China steps in to buy corn.
We'll see how it all unfolds, but this is something I think you should be watching.
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*This is not trading advice; past results are not indicative of future results*