Should You Buy the Dip in December Corn?

December corn (ZCZ25) futures present a buying opportunity on more price strength.

See on the daily bar chart for December corn futures that prices are in an uptrend. The bulls have the slight overall near-term technical advantage as “the trend is their friend.” Corn traders have recently adopted a “buy the dip” mentality, which is keeping the price uptrend alive.

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Fundamentally, there has been strong global demand for U.S. corn in recent weeks. The upcoming U.S. harvest is going to be large and potentially record-large, but it appears traders have already factored into corn futures prices a bumper U.S. crop.

A move in December corn futures above chart resistance the September high of $4.24 3/4 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be $4.60, or above. Technical support, for which to place a protective sell stop just below, is located at $4.10.www.barchart.com

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com