Recently there is a negative news that cause bearish, gloom and doom sentiment that hit commodity corn pretty much is the Trade War Tensions between United States and China in year 2018.
Corn Teucrium Corn Fund ETF has seen price bottoming at price level 15.39 in September 2018 where Trade Tensions ran high with each United States and China both imposing an additional trade tariffs targetting at each other.
However, currently market sentiment has turned for the better with ongoing United States and China meeting and talks to resolve trade war tensions and vowed not to raised additional tariffs targetting at each other and enter a truce of 90 days since the G20 meeting in 30 November 2018 hosted by Argentina.
Recently, China has " took more steps to defuse trade tensions with the U.S., confirming it will remove the retaliatory duty on automobiles imported from America and preparing to restart purchases of American corn" and "China also may buy at least 3 million metric tons of American corn" reported by Bloomberg in 14 December 2018.
https://www.bloomberg.com/news/articles/2018-12-14/china-cuts-tax-on-u-s-vehicles-in-move-to-soothe-trade-tensions
https://www.ttnews.com/articles/trade-war-drives-farmers-corn-china-shuns-us-soybeans
https://www.chicagotribune.com/business/ct-farmers-trade-war-aid-checks-20180923-story.html
Commodity Corn indeed is a buying opportunity should the trade war tension ease and resolve couple with the weakening US dollar could see commodity corn priced in US dollar price rally to new highs.
Lets take a look at the Technical Chart below deciphering price action setup.
Corn Monthly Histoical Chart 25.1.19
Corn Monthly Histoical Chart With Technical Analysis 25.1.19
Based on above Technical Anlsysis, Teucrium Corn Fund ETF all time high is 52.71 seen in June 2012. Fair Value works out to be 26.35 and undervalue price works out to be 13.17. Chart display clearly a bullish price action setup with certain indicators like 20 Day Simple Moving Average (SMA) seen candlestick close above. Potential big rounding bottom chart formation signals bullish market sentiment is on the cards where the recent trade war tariffs has seen price bottoming out at 15.39 low in September 2018 and price rebound to last close trading price at 16.35. My target for Teucrium Corn ETF are listed below:
1) 1st Target resistance is between 22.62 to 23.79
2) 2nd Target resistance is 26.35
3) 3rd Target resistance is 30
4) 4th Target resistance is 35
5) 5th Target resisstance is 53
Finviz Corn Monthly Historical Chart 27.1.19
Finviz Corn Monthly Historical Chart With Technical Analysis 27.1.19
Above Finviz Corn Technical Analysis Chart display bullish price action setup. It has a saucer and rounding bottom chart formation, consolidating in a rectangular chart pattern pending for price breakout. Price may see resisted and backtest resistance turn support approaching three orange color lines also known as price channel.
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
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