Just a reminder, these charts are posted as examples of the trades on the nightly COT Signals email. These trades will help illustrate the mechanics that go into creating the nightly email.
The corn trade this morning has a couple of factors going on. First of all, commercial momentum has been building over the last four to six weeks. During this period, the market has been consolidating between $4.24 and $3.72 with the most recent swing low coming in at $3.90 1/4. We will use this as our swing low which will allow us to quantify the risk in the trade. This will also allow you to determine the appropriateness of this trade for your own account.
If the market closes above $4.25 it will confirm a breakout to the upside. The first measured objective, based on the technical formation, is the $4.75 area.
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