Thursday, May 8, 2008

Corn Break-Out

Corn has not only achieved a new all-time closing high, but has also closed outside of the Bollinger Bands, and it represents a perfect Cahen T1 (see his book in my list at the right side of this blog). This daily chart shows the emergence of what may be a new trend for corn. This is a strongly bullish signal, and when combined with strong volume, as this shows on the Klinger Volume indicator, it has a very high probability of success. If prices continue higher than the new high reached today, this new bullish trend would be confirmed. I am also looking for a possible pull-back to the Exponential Moving Average before the new bull trend resumes. Wheat was also stronger, and even soybeans rebounded somewhat just in the closing moments of the trading session.