Don't Ignore This Chart!

Corn ETF Attempts to End Wave 2 Correction


Corn is showing signs of firming near the June lows and a possible wave 2 could be ending for the Corn Trust ETF (CORN). I will first start with December Corn Futures (^CZ15) because this is the most widely traded instrument for corn. Note that StockCharts provides end-of-day (EOD) data for dozens of commodities and these symbols begin with a caret (^). Chartists simply need to search the symbol catalog for ^ to see them all. I will include an example at the end of this commentary. Turning back to corn, the futures contract surged in June-July and then fell all the way back to the June lows in August-September. It looks like these lows are holding because corn surged off the support zone in mid September. The indicator window shows MACD (12,26,9) moving into positive territory for the first time since July. 

The next chart shows Spot Corn ($CORN) in the main window and the Corn ETF (CORN) in the indicator window. Notice that spot corn held above its June lows in August-September. This means we have a possible Wave 2 pullback on our hands. I don't do much Elliott Wave, but it was required for the CMT and I learned that second Wave pullbacks can be very deep. The only requirement is that Wave 2 holds above the prior low. The June-July surge was certainly strong and could be indicative of a Wave 1 move. If this is Wave 2, then a breakout around 400 would signal the start of Wave 3. 

Here is a list of some futures symbols that we carry

Thanks for tuning in and have a good day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan


Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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