Based on our pattern studies corn is still decidedly bullish -- see Risk Tolerance Threshold Ratio in Figure 1.

The front month contract shifted its day to day pattern higher last week. From a short-term trader’s perspective that day to day pattern is the most influential as it is a reflection of the day to day news flow. A bullish pattern shift, while significant, is not necessarily a buy signal, but does make the next buy set-up following a price dip all the more attractive.

Corn Threshold Ratio

W – Primary Up
D – Secondary Down
240 – Day to Day Up
L-T Micro Up
I-T Micro Up

Figure 1.

Jay Norris is a Market Strategist at EosTrade.com

Trading is a risky endeavor and not suitable for all investors.