Corn Elliott Wave analysis
Corn prices have experienced a notable rebound, rising approximately 14% since the late August 2024 low. This upward movement serves as a corrective phase against the broader decline that began in May 2024. While the short-term outlook suggests further upside potential, the medium-term analysis leans towards a bearish continuation, with prices expected to settle below the $475 mark.
Daily chart analysis
The prevailing bearish trend in corn began in April 2022. However, this decline appears to be corrective rather than impulsive, indicating a more complex wave structure. Unless we witness an impulsive recovery, the current upward movement is likely temporary and should reverse soon. Analyzing the price action from the April 2022 high reveals a double zigzag pattern at the cycle degree. The decline from $475 is identified as an impulse wave, specifically forming wave (A) of Y (circled) within the larger cycle wave y. The ongoing bounce is classified as wave (B) of Y (circled), which ideally needs to cap below $478 to validate the current Elliott Wave count.
Four-hour chart analysis
Delving into the H4 chart, the recent upward momentum appears to have completed wave A of (B). Confirmation of wave B's completion will occur if the price breaks above the wave A high. Should this happen, we can expect wave C of (B) to target the 450 level. While this short-term perspective supports a corrective bounce, it is essential to recognize that the broader bearish sequence remains incomplete. This suggests that the long-term downward trend could reassert itself following the top of wave (B).
In summary, the Elliott Wave analysis of corn indicates a current corrective bounce that is likely to be short-lived. Traders should be cautious as the overall bearish trend persists, with the possibility of renewed downward movement looming as we approach critical resistance levels. Keeping an eye on wave structures and key price levels will be crucial for anticipating market shifts in the coming weeks.
Corn Elliott Wave technical analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
Australian Dollar extends gains despite mixed PMI
The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions.
Japanese Yen fails to build on stronger CPI-led intraday uptick against USD
The Japanese Yen (JPY) attracted some follow-through buying for the second successive day following the release of slightly higher-than-expected consumer inflation figures from Japan. This comes on top of Thursday's hawkish remarks from BoJ Governor Kazuo Ueda, which keeps expectations for a December interest rate hike in play.
Gold price advances to near two-week top on geopolitical risks
Gold price touched nearly a two-week high during the Asian session as the worsening Russia-Ukraine conflict benefited traditional safe-haven assets. The weekly uptrend seems unaffected by bets for less aggressive Fed policy easing, sustained USD buying and the prevalent risk-on environment
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.