Corn futures pressed higher in Tuesday’s session to close at the upper edge of a Triangle chart pattern, which may preclude a technical breakout for Wednesday. Corn has managed to hold gains despite weakness in the grain overall, and appears to be trying to lead the complex higher.
The Triangle chart pattern, illustrated here on the 240-minute time interval, has a simple sideways range which has held the price steady after a major decline from the season highs. The recovery and subsequent rally above $6.40 places the price at the resistance level marking the top of the pattern.
Higher trade from this level will initiate the breakout, which may transpire as a sustained short covering rally and establish last week’s upturn as a cyclical swing low in the market. Thus a push higher on strong momentum is more likely to achieve the forecast target, and may also move into a continuation pattern to retest the previous contract highs well above $7.00 per bushel.
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