Pattern, Forecast, Outcome: See the Fast Decline in Corn

Pattern, Forecast, Outcome: See the Fast Decline in Corn

Here we have a chart of recent action in the corn market, which saw a 7%-plus decline from this December 6 high through the low on January 9.

So let’s back up to just before that December 6 high, and see our December 4 corn forecast. We showed a version of this chart and said, “a [brief] rally might complete a corrective recovery,” specifically, a possible “larger wave 2 correction is unfolding,” which would “set the stage for wave 3” down.

In turn, corn did rally briefly thru the 6 and begin lower. On December 11, we said,

“the failure … to exceed 496.5 suggests that the market can’t wait to take corn lower.”

Indeed, the trend did not wait, falling lower thru December 20. On that day, we told subscribers that, “Corn is approaching a temporary low…” and, “…given the dominant trend, the next rally attempt should prove corrective.”

That day was the temporary low: The countertrend rally moved up thru the 26. On December 28, we said, “Corn should not only resume its decline, but given its third-wave position, the decline should strengthen.”

Which it did. Here’s the action through the intraday low on January 9.

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