Saturday, November 7, 2009

Corn



The corn market continued retracing its leg off the 302 L this past week.
Interpretation remains that this market is tracing an intermediate degree (4) wave of primary [A].
I still have concerns about this (4) wave. As discussed last week, it appears to be tracing a zigzag. After such a deep A leg, we are left with little room for C. We did have a nice B leg up that helps.
The price extreme of (1) is 347.60. Should price trade through that level, I would have to re-think my assessment of the structure.
The 50 sma has turned up, and is now above the 347.60 level. This may possibly help support price when they meet.
Notice that RSI has reached the upward sloping trend line, which dates back to early June. This may provide support as well.
Don't forget about the "point of recognition" at the 353 level, an additional possible level of support.
C = 61.8% of A at 365.25. The 78.6% projection of A sits at 356. The 61.8% retracement of (3) comes in at 349.50.

Bottom line - Until 347.60 is traded through, I maintain my bullish stance.

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