CORN - Potential Upward MovementCORN replenishing at demand zone. It will likely bounce back up. Exit at supply zone.
ZC1! trade ideas
It’s Corn!You know the “It’s Corn” song trending on TikTok? It brings a smile to our face every time we hear it. But if you look at Corn’s price chart and fundamental outlook, that’s a whole other story…
Corn’s recent breakout of a symmetrical triangle towards the downside caught our attention. With the clear break and an ensuing retest, Corn is now trading right on previous support levels. We think this might just be a small reprieve in the downward direction it is headed.
Not only that, when you zoom out to a longer timeframe, Corn has just broken its long-term trend support established since 2020.
This combined with the symmetrical triangle break proves to provide a strong bearish case from here. Classical chart pattern analysis points the take-profit range from the triangle pattern, at roughly 292 points away. From the initial point of breakout, 292 points away takes us back to the 360 level which was the average price seen from 2014 to 2020, back to pre-covid and pre-Russian/Ukraine conflict levels.
Additionally, in a or few previous analyses we emphasized how many of the commodities have started to return to ‘normality’ with prices moving back to pre-war levels. We have already seen Wheat and Soybean retracing most of the War rally as prices tumbled, therefore it’s not hard to see Corn do the same soon.
Other supporting fundamental factors include the falling Ethanol prices and in turn, lower usage of corn for Ethanol, resulting in overall supply to increase.
Fertilizer prices have also fallen from all-time highs, with continued downward momentum. Lower fertilizer cost means better margins for the farmers and potentially higher usage of fertilizers in planting, which may result in better crop yield. Both factors work to lower corn price through more competitive pricing from the farmers and increased supply.
Combined, we think the fundamental and technical chart set-up provides a convincing case for Corn to fall lower. We set our stops above the triangle apex and at the previous level of resistance, 688, and our initial take-profit levels at 565 followed by 455, giving us a risk reward of roughly 1.46 and 3.66 from the current level of 637.6. Each 0.0025 point increment in CME Corn Futures is equal to 12.5 USD.
The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. A full version of the disclaimer is available in our profile description.
Reference:
www.cmegroup.com
www.cmegroup.com
Good Risk/Reward for May2023 Corn LongsTaking a look at K23 Corn futures, a great risk to reward setup has shown itself. Looking back to the beginning of 2023, Corn has retreated to support, and held overnight(~650). Using a tight stop (644), one can surmise that you can risk ~6 to gain ~30, as 680 is previous resistance. Happy Trading!
Corn Futures ( ZC1! ), H4 Potential for Bearish DropTitle: Corn Futures ( ZC1! ), H4 Potential for Bearish Drop
Type: Bearish Drop
Resistance: 688.50
Pivot: 673.00
Support: 648.25
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bearish due to the current price crossing below the Ichimoku cloud, indicating a bearish market. To add confluence to this bias, price is also within a descending channel. If this bearish momentum continues, expect price to possibly retest the pivot at 673.00 where the overlap resistance and 50% Fibonacci line is before heading towards the support at 648.25, where the previous swing low is.
Alternative scenario: Price may head back up to retest the resistance at 688.50 where the recent high is located.
Fundamentals: There are no major news.
I fit fibs bc I like when it takes the paths of my fibs “tOo MaNy LiNeS” I can’t predict the future but apparently I can predict one of few ranges of lines of support and resistance.
Corn Futures ( ZC1! ), H4 Potential for Bearish DropTitle: Corn Futures ( ZC1! ), H4 Potential for Bearish Drop
Type: Bearish Drop
Resistance: 688.50
Pivot: 673.00
Support: 648.25
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bearish due to the current price crossing below the Ichimoku cloud , indicating a bearish market. If this bearish momentum continues, expect price to possibly head towards the support at 648.25, where the previous swing low is.
Alternative scenario: Price may head back up to retest the resistance at 688.50 where the recent high is located.
Fundamentals: There are no major news.
Corn Futures ( ZC1! ), H4 Potential for Bearish DropTitle: Corn Futures ( ZC1! ), H4 Potential for Bearish Drop
Type: Bearish Drop
Resistance: 688.50
Pivot: 673.00
Support: 648.25
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bearish due to the current price crossing below the Ichimoku cloud, indicating a bearish market. If this bearish momentum continues, expect price to possibly head towards the support at 648.25, where the previous swing low is.
Alternative scenario: Price may head back up to retest the resistance at 688.50 where the recent high is located.
Fundamentals: There are no major news.
Corn Futures ( ZC1! ), H4 Potential for Bullish ContinuationTitle: Corn Futures ( ZC1! ), H4 Potential for Bullish Continuation
Type: Bullish Continuation
Resistance: 706.50
Pivot: 6681.00
Support: 673.00
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bullish due to the current price being above the Ichimoku cloud , indicating a bullish market. If this bullish momentum continues, expect price to possibly head towards the resistance at 706.50, where the previous swing high is.
Alternative scenario: Price may head back down to retest the support at 673.00 where the recent low is located.
Fundamentals: There are no major news.
Corn Futures ( ZC1! ), H4 Potential for Bullish ContinuationTitle: Corn Futures ( ZC1! ), H4 Potential for Bullish Continuation
Type: Bullish Continuation
Resistance: 706.50
Pivot: 6681.00
Support: 673.00
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bullish due to the current price being above the Ichimoku cloud, indicating a bullish market. If this bullish momentum continues, expect price to possibly head towards the resistance at 706.50, where the previous swing high is.
Alternative scenario: Price may head back down to retest the support at 673.00 where the recent low is located.
Fundamentals: There are no major news.
Corn Futures ( ZC1! ), H4 Potential for Bullish RiseTitle: Corn Futures ( ZC1! ), H4 Potential for Bullish Rise
Type: Bullish Rise
Resistance: 706.50
Pivot: 688.75
Support: 661.25
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bullish due to the current price being above the Ichimoku cloud , indicating a bullish market. If this bullish momentum continues, expect price to possibly head towards the resistance at 706.50, where the previous swing high is.
Alternative scenario: Price may head back down to retest the support at 661.25 where the 61.8% Fibonacci line and recent low are located.
Fundamentals: There are no major news.
Corn Futures ( ZC1! ), H4 Potential for Bullish RiseTitle: Corn Futures ( ZC1! ), H4 Potential for Bullish Rise
Type: Bullish Rise
Resistance: 706.50
Pivot: 688.75
Support: 661.25
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bullish due to the current price being above the Ichimoku cloud, indicating a bullish market. If this bullish momentum continues, expect price to possibly head towards the resistance at 706.50, where the previous swing high is.
Alternative scenario: Price may head back down to retest the support at 661.25 where the 61.8% Fibonacci line and recent low are located.
Fundamentals: There are no major news.
Corn prepares for a bullish move🤘As described here - I'm planning to catch the breakout. Let's see if this plays out as I think. In any case - I wish you a good 2023 with lots of good trades. ;)
Corn Futures ( ZC1! ), H4 Potential for Bearish DropTitle: Corn Futures ( ZC1! ), H4 Potential for Bearish Drop
Type: Bearish Drop
Resistance: 671.75
Pivot: 660.00
Support: 636.00
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market. If this bearish momentum continues, expect price to possibly continue heading towards the support at 636.00, where the previous swing low is.
Alternative scenario: Price may head back up to retest the pivot at 660.00 where the 50% Fibonacci line is.
Fundamentals: There are no major news.
ZC1! Potential For Bearish ContinuationLooking at the H4 chart, my overall bias for ZC1! is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market. Looking for a sell stop entry at 648.50, to catch the bearish momentum. Stop loss will be placed at 664.00, where the recent high is. Take profit will be at 635.00, where the previous swing low is.
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Corn Futures ( ZC1! ), H4 Potential for Bearish DropTitle: Corn Futures ( ZC1! ), H4 Potential for Bearish Drop
Type: Bearish Drop
Resistance: 671.75
Pivot: 660.00
Support: 636.00
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bearish due to the current price being below the Ichimoku cloud , indicating a bearish market. If this bearish momentum continues, expect price to possibly continue heading towards the support at 636.00, where the previous swing low is.
Alternative scenario: Price may head back up to retest the pivot at 660.00 where the 50% Fibonacci line is.
Fundamentals: There are no major news.
Corn Futures ( ZC1! ), H4 Potential for Bearish DropTitle: Corn Futures ( ZC1! ), H4 Potential for Bearish Drop
Type: Bearish Drop
Resistance: 671.75
Pivot: 660.00
Support: 636.00
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market. If this bearish momentum continues, expect price to possibly continue heading towards the support at 636.00, where the previous swing low is.
Alternative scenario: Price may head back up to retest the pivot at 660.00 where the 50% Fibonacci line is.
Fundamentals: There are no major news.
ZC1! Potential For Bearish ContinuationLooking at the H4 chart, my overall bias for ZC1! is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market. Looking for a possible sell entry at 659.25, where the 50% Fibonacci line and the liquidity hotspots are located. Stop loss will be at 671.75, where the 61.8% Fibonacci line is. Take profit will be at 638.25, where the -27.2% Fibonacci expansion line is.
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
ZC1! Potential For Bearish ContinuationLooking at the H4 chart, my overall bias for ZC1! is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market. Looking for a pullback sell entry at 659.25, where the 50% Fibonacci line is. Stop loss will be at 671.75, where the 50% Fibonacci line is. Take profit will be at 635.00, where the previous swing low is.
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Corn Futures ( ZC1! ), H4 Potential for Bullish RiseTitle: Corn Futures ( ZC1! ), H4 Potential for Bullish Rise
Type: Bullish Rise
Resistance: 698.50
Pivot: 651.25
Support: 638.25
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bullish due to the current price being above the Ichimoku cloud , indicating a bullish market. If this bullish momentum continues, expect price to possibly head towards the resistance at 698.50, where the previous swing high is.
Alternative scenario: Price may head back down to retest the pivot at 651.25 where the 23.6% Fibonacci line and recent low are located.
Fundamentals: There are no major news.
Corn Futures ( ZC1! ), H4 Potential for Bullish RiseTitle: Corn Futures ( ZC1! ), H4 Potential for Bullish Rise
Type: Bullish Rise
Resistance: 698.50
Pivot: 651.25
Support: 638.25
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bullish due to the current price being above the Ichimoku cloud, indicating a bullish market. If this bullish momentum continues, expect price to possibly head towards the resistance at 698.50, where the previous swing high is.
Alternative scenario: Price may head back down to retest the pivot at 651.25 where the 23.6% Fibonacci line and recent low are located.
Fundamentals: There are no major news.
ZC1! Potential For Bullish ContinuationLooking at the H4 chart, my overall bias for ZC1! is bullish due to the current price being above the Ichimoku cloud , indicating a bullish market. Looking for a pullback buy entry at 671.75, where the 50% Fibonacci line is. Stop loss will be at 659.25, where the 50% Fibonacci line is. Take profit will be at 698.25, where the previous swing highs are located.
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Corn Selling OffCorn has had a nice run up from the December 7th lows and made a push against trendline resistance from the June highs of this year. If you zoom out on the chart, there is some nice trendline support as well going back to the July lows. As we tested the overhead resistance, the market sold off and is now testing the 200-day moving average. There is a seasonal coming up, where if you buy the May corn contract on 1/13 and hold it through 2/6, it has gone higher 13/15 years. This does not guarantee it will be successful this year, but it does give strong historical context on how the market has traded, and as we are testing strong technical points in this wedge there could be great volatility.
Corn Futures ( ZC1! ), H4 Potential for Bullish RiseTitle: Corn Futures ( ZC1! ), H4 Potential for Bullish Rise
Type: Bullish Rise
Resistance: 700.00
Pivot: 651.25
Support: 638.25
Preferred case: Looking at the H4 chart, my overall bias for ZC1! is bullish due to the current price being above the Ichimoku cloud , indicating a bullish market. If this bullish momentum continues, expect price to possibly head towards the resistance at 700.00, where the previous swing high is.
Alternative scenario: Price may head back down to retest the pivot at 651.25 where the 23.6% Fibonacci line and recent low are located.
Fundamentals: There are no major news.
