Looking at the cot report: Comm's are shedding shorts, the k-z spread is a weak -15, corn acres are being bought, not very polar. Let's say the PRC/USA make a deal, the algos spike it up but thats a fade imho until we see bullish spring weather facts. What if no deal or delayed deal? Bear hibernation is over.
Thanks becker,
Corn is very interesting on the charts.
Wedge pattern technical formation, also called a symmetrical triangle and also called a coil formation.
Since last September, we've had higher lows and lower highs and the range is getting tighter and tighter(contracting).
If you throw out the spike low in September, you can make a case for this pattern to have started back in early July.
Buyers are stepping up and aggressively buying before prices reach previous lows and sellers are doing the same and selling aggressively before prices reach previous highs.
The range from August 2018 high to the Sept low, just a month later was 50c. The tightening range in the last month has been just 10c.
While wedge patterns are often continuation patterns, especially falling and rising wedges, this one doesn't seem like it has a bias to me.
https://www.investopedia.com/terms/s/symmetricaltriangle.asp
A symmetrical triangle is a chart pattern characterized by two converging trendlines connecting a series of sequential peaks and troughs.
On the corn chart above/at the top, the downtrending and uptrending lines, if they continue,will at some point intersect at the apex of the triangle, unless the prices breaks out above or below the trendlines first.
The break out thru the long lived trendline, might be a clue to the direction for corn, as it might be an indicator of a change in the psychology of buyers and/or sellers (becoming more or less aggressive).
It's also just as likely that the triangle can reach an apex, where the lines meet and we continue afterwards, with a tight price range which doesn't break out above previous major resistance or below previous major support.
The binary proposition:
If the PRC/USA trade deal gets delayed past H ; corn, beans go south on fair weather planting.
Or if a deal is made before K and US planting and Wx go abnormal; C, S go north.
Could be some hi volit coming. Good news is we got an ace met guy; The metmike.