Today both CORN & WEAT are trading below their recent consolidation ranges, which was mentioned a both a possibility as well as a potential criterion for those preferring a tight stop on these trades. In the previous (original) post on CORN, it was stated that an entry at that time would be somewhat aggressive as CORN has significant resistance not far overhead at the top of the July 21st gap, which is where the recent pop in CORN reversed when prices failed at that level.
As with the related WEAT ETF trade, today’s break below the recent trading ranges in both ETFs can be used as a tight stop for more active traders or those preferring to keep a tight rein on losses. However, as also stated in the previous post, CORN was also added as a Long-term Trade Idea with a suggested stop some below the 340 area on $CORN (spot corn) prices. As with the previous weekly chart & this updated weekly chart, the two most likely scenarios are drawn with the green arrows that show prices either breaking above the recent consolidation zone (much less likely now) or continuing lower to the S1 support area around 340, which is now the more likely to the two. Note how the MACD line is starting to curl up but has yet to make a bullish crossover, thereby yet to confirm the potential positive divergence that is forming although it does look likely by if/when price fall to the 340 level. Note: The chart of $CORN is an End of Day (EOD) chart of spot corn prices, meaning that the chart is only updated after the close of trading each day. Hence, I will use the daily chart of CORN (ETF) as well as corn futures in determining my entry & exit points.
- CORN daily Sept 3rd
- $CORN weekly Sept 3rd
As CORN is now trading well below the 25.60 tight stop level, it will be considered stopped out from the Active Long Trades category (typical swing trades) but will remain as both an Active Long-term Trade & Long-term Setup until/unless we get a solid weekly close on $CORN below the 340 support level. As the daily chart of WEAT is very similar to CORN, I will also consider the Active Long Trade on WEAT stopped out on the break of support while leaving WEAT on as an Active Long-term Trade idea for now with stops TBD soon.
Click here to view the live, annotated weekly chart of $CORN (EOD spot corn prices) or click here to view the live, annotated daily chart of CORN (ETF).