Bears Drive Corn, Wheat Lower -- Technical Analysis

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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