July Corn Futures
The corn market gave up some of its recent gains over the last two sessions after just missing the first targeted projection of 409. Today’s close 400 3/4 puts the contract just above the previous breakout level of 399. If this breakdown is an a-b-c correction then it should find support at this level. In my opinion it would be worth a shot to establish a long position with a stop risk placed below 397 (396 1/2). Should the market put up a fight it will then attempt a rise to roughly 403 1/4. This will prove to be a tough spot being that this is where the market broke down after the overnight session. I believe a fortification of this level would set the stage for a continued advance. My first overhead objection comes in at +/- 414. This level is time sensitive because of its angled nature. The extreme projection at the 1 x 1 extension looks for a rather robust rally to +/-425. Please feel free to contact me at Walsh trading to discuss both futures and options strategies to take advantage of this scenario playing out. I always favor trying to capture a minimum of a 2.5 to 1 risk reward. This particular setup looks achieve a more than favorable ratio.
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