Corn Elliott Wave Technical Analysis
Corn prices have rebounded significantly, rising about 14% since the low in late August 2024. This upward move represents a corrective phase within the broader downtrend that began in May 2024. While the short-term outlook indicates potential further gains, the medium-term forecast remains bearish, with prices likely to drop below $475.
TradingLounge Corn Commodity Daily Chart Analysis
The dominant bearish trend for corn started in April 2022. This decline appears corrective rather than impulsive, suggesting a complex wave structure. Without an impulsive recovery, the current upward movement is expected to be temporary, with a likely reversal ahead. A closer look at the price action since the April 2022 high reveals a double zigzag pattern at the cycle degree. The fall from $475 is identified as an impulse wave, forming wave (A) of Y (circled) within the broader cycle wave y. The ongoing rise is classified as wave (B) of Y (circled), and it is critical that this wave caps below $478 to confirm the current Elliott Wave count.
TradingLounge Corn Commodity H4 Chart Analysis
In the H4 chart, the recent rise appears to have completed wave A of (B). The confirmation of wave B’s completion will occur if the price breaks above the wave A high. If this break happens, wave C of (B) may target the $450 level. Despite this short-term correction, it’s important to note that the broader bearish sequence is still unfolding. This suggests that after the completion of wave (B), the long-term downtrend could resume.
Technical Analyst: Sanmi Adeagbo
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Conclusion
The Elliott Wave analysis for corn suggests that the current corrective rally may be short-lived. Traders should remain cautious, as the overall bearish trend continues, with the possibility of renewed downward movement approaching key resistance levels. Monitoring wave patterns and critical price points will be essential in anticipating market changes over the next few weeks.