We think this is a good spot to consider some corn re-ownership strategies, as we are at an area where it would make sense to find support.

We will go over a few exact strategies we like later in today’s audio update.

But we prefer to re-own new crop compared to old crop, as new crop has a better story.

If you have questions, feel free to reach out to us.

Office: (806)484-1214

Here are the charts and reasoning behind the signal.

Dec Corn:

We’ve given back 50% of the entire rally.

This level is also old resistance.

Old resistance often turns into new support.

We also have some potential hidden bullish divergence on the RSI.

RSI made lower lows, prices have still made higher highs.

Similar to that bearish divergence we talked about that ended up marking the local highs.

July Corn:

If you take the recent highs down to contract lows, we are right at the 61.8% level.

This same level was that old key support from fall.

May Corn:

May corn looks the weakest.

We broke below the 61.8% level, so objectively this is not a great sign and suggest the top has a decent chance of being in, barring an unknown event.

However, we are now essentially at our last line of defense before contract lows.

The 78.6% level and where this market bounced in October.

Fail this level and we likely go back to the lows.

This is an area we’d except to bounce after failing that 61.8% level.

Disclaimer: Futures and options are risky and not suitable for everyone. There are no guarantees of profit. Past performances do not indicate future results.