May Corn – Corn traded sharply higher, reaching a high of $7.68 and reaching the 60% sell zone, before Wednesday’s (April 20, 2011) projected reversal date kicked in and turned the market lower. Corn tumbled over 29 cents into the close, finishing the day as an “outside” day with a bearish tail. This price action is further confirmation of the failed swing pattern that occurred on April 12, 2011. The large price swing overextended the market on a short-term basis. Typical price action suggests the market would rebound enough to test the descending median line before resuming the downward price swing. A quick look at the chart shows the Corn did rally into the median line resistance and is resuming the downward trend towards the lower parallel (red) line. I will have updated information on Corn in the next issue of the TMV Swing Trade report.
