The continuous monthly chart for December corn only shows an interesting pattern I don’t get to talk about often. The converging trendlines connecting the lows starting with May 2021 ($5.0025) and highs starting also with May 2021 ($6.38) form a symmetrical triangle, a pattern that is usually viewed as a continuation though can occur as a reversal. In this case it is the latter, with a clear breakout occurring at the end of August as the 2021 contract closed below trendline support calculated at $5.4225. Given the base of $1.38, and the August bearish breakout point of $5.42, the downside target is $4.04. That’s a long way down there, I know, but keep in mind the 2022 issue was price at $5.0725 as August came to an end.
Recall December corn was already classified as being in a major (long-term) downtrend given its bearish spike reversal during May. This pattern confirmed the bearish crossover by monthly stochastics above the overbought level of 80% at the end of April.