Grain commodity futures now find themselves among the ranks of 2021’s other parabolic upward movers like Bitcoin and Tesla Inc (NASDAQ: TSLA). Corn futures are up about 26% since the most recent intraday lows on Dec. 2, while Soybean futures have risen about 23% during the same time. Soybeans have seen a strong move upward on high volume since the new year.
However, the /ZS contract is closing in on the 1450 level, which represents two standard deviations from the yearly Linear Regression Line and could likely be a point technical traders are watching for a stall in the trend. To the downside, watch for buyers to step in near the Parabolic SAR at 1374 and the 21-day Exponential Moving Average at 1314.
Corn is also showing lofty prices after eclipsing the 500 level with a big breakout, but yesterday saw aggressive selling after reaching 540 and it finished on a doji. For the /ZC contract, look for support at the confluence of previous resistance and the Parabolic SAR around 500, and also near the 21-day EMA at 480.
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