Chart of the day: Corn to turn the corner?
Over the past decade, Dalian corn futures prices have been on a roller-coaster ride. From a record low of just over 1,000 yuan (US$145.21) per tonne, they peaked dramatically at 2,770 yuan. Trending down in erratic steps within a trend channel since then, they have spent the past seven months trying to base against Fibonacci retracement and secular support between 1,375 and 1,500 yuan. The big hammer candle a fortnight ago, following the bullish Marabuzo candle from trend channel support, adds upside pressure to the neat little rounded bottom that has been forming since December. As and when resistance between 1,630 and 1,670 yuan breaks, expect a rush to 1,750 yuan and then 1,850 yuan.
Nicole Elliott is a technical analyst