There are a couple of significant technical developments on the CORN (Corn ETF) active Long Trade & Long-term Trade idea worth noting. From a longer-term perspective, the charts remain constructive and my expectation remains that prices will continue to work their way up to the second resistance zone (R2 zone) on the $CORN (spot corn prices) weekly chart over time. However, there are some potentially bearish shorter-term developments that could lead to a sizable correction before then.

$CORN weekly Jan 5th

$CORN weekly Jan 5th

 

On the daily chart of CORN (Corn ETF) below, CORN appears to be in the latter stages of a potential bearish rising wedge pattern, complete with negative divergences in place. As such, it would be prudent to consider booking partial or full profits and/or raising stops to either a solid break or close below the bottom of the wedge pattern. Should CORN trade below Friday’s low of 26.24, I will consider the Active Long Trade on CORN stopped out. However, CORN is also categorized as a Long-term Trade and the stop for that trade will remain a weekly close below 25.00.