10-31 13:59: Bears Drive Corn, Wheat Lower -- Technical Analysis By Kira Brecht DECEMBER CBOT CORN December corn eked out another modestly weaker close on Tuesday. Overall momentum is lackluster, but the short-term corn trend bias remains negative. On the upside, the 10-day moving average continues to act as nearby resistance with additional chart ceilings at $3.71 1/2, $3.72 1/2 and then the recent high and short-term top at $3.78 1/2, the Oct. 15 peak. The minor daily corn downtrend seen off the $3.78 1/2 high remains intact. Corn bears retain the short-term technical edge. December corn is slipping toward a potential test of major support at $3.60 1/4-$3.60 1/2, the Oct. 11 and Oct. 25 lows. Declines below that support zone would open the door for a fresh corn selling wave. On the upside, a rally and sustained recovery through the most recent swing high at $3.71 1/2 would be needed to suggest corn bulls are gaining a toehold. $4.29 1/2 -- the contract high $3.68 -- the 10-day moving average $3.68 1/4 -- the 20-day moving average $3.63 1/2 -- the 40-day moving average $3.86 3/4 -- the 200-day moving average $3.42 1/2 -- the contract low DECEMBER CBOT WHEAT December wheat extended lower Tuesday as bears gain momentum. The short and intermediate-term wheat trend remains bearish. On the downside, December wheat bears are gearing up for a potential test of support at $4.85 1/2, the recent low scored on Oct. 25. If wheat bears succeed in cracking the $4.85 1/2 low it would open the door to a fresh selling wave with bearish chart objectives at $4.73 3/4, the Jan. 16 swing low and then $4.68 1/4, the Dec. 12 swing low. On the upside, the 10-day moving average is first resistance with secondary chart resistance at $5.15, Monday's high. $4.29 1/2 -- the contract high $5.05 3/4 -- the 10-day moving average $5.11 1/4 -- the 20-day moving average $5.13 1/2 -- the 40-day moving average $5.29 1/2 -- the 200-day moving average $3.50 1/4 -- the contract low DECEMBER KC WHEAT December Kansas wheat sank lower Tuesday. The near and intermediate-term trends point down. On the downside, Kansas wheat bears are closing in on a test of support at last week's low at $4.86 1/2. If that cracks, it would open the door to further weakness with a bearish chart objective at $4.78 1/4, the December swing low. Monday's high at $5.10 1/4 is resistance. $6.42 -- the contract high $5.04 1/2 -- the 10-day moving average $5.13 -- the 20-day moving average $5.16 1/4 -- the 40-day moving average $5.45 3/4 -- the 200-day moving average $4.78 1/4 -- the contract low (END) Dow Jones Newswires October 31, 2018 08:00 ET (12:00 GMT) Copyright (c) 2018 Dow Jones & Company, Inc.
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Bears Drive Corn, Wheat Lower -- Technical Analysis Wednesday 10/31/2018 11:12:00 AM CST