Tech Talk: Corn, soybeans and wheat trends

May 31, 2010 07:00 PM

Corn remains in a large sideways consolidating trade. This type of chart action provides low risk trades for any trader but patience is the key. Wait for prices to either test $3.10 support or $4.10 resistance, or if the Stochastic and/or RSI signal a buy or sell, then take action. Risk is a weekly close that violates the trendline.


Soybeans have been trending slightly higher and are now approaching the top end of a larger symmetrical triangle. Using the Stochastic can offer guidance but once the triangle is taken out, use the MACD and trends as a long-term trading tool.


Wheat remains locked in a descending triangle but held support and posted a minor reversal. Traders should play this range and keep risk tight. Buy dips against $4.40 support and sell against $5.18 resistance.


Rich Nelson is director of research for Allendale Inc. You can reach him at or

About the Author

Rich Nelson is Director of Research at Allendale, Inc. in McHenry, IL. Allendale is registered with the CFTC and NFA and is a member of the NIBA.