Market: $ZC_F
Chart:
Chart Analysis:
Corn prices popped 5% after yesterday’s dismal USDA Crop Report predicting that this year’s harvest could be the smallest in six years. Corn futures contracts ($ZC_F) already experienced an increase of 62% this year due to the drought ridden crop shortages throughout the summer. With the USDA forecasting only 10.7 billion bushels for this year’s harvest, livestock owners and other corn dependent organizations are considering purchasing now to hedge possible shortages and higher prices throughout the winter. Today’s NinjaTrader Chart of the Day, powered by the free end of day Kinetick Data Feed, showcases the Daily Corn Futures Contract ($ZC_F) from midsummer until its recent spike at yesterdays close. Using the Swami Stochastics indicator, which is available for free on the NinjaTrader Support Forum, one can use the color coded price oscillator to predict bullish and bearish periods. Note the green bullish trend illustrated by the Swami Stochasitcs indicator during this summer’s surge in corn prices. As the market emerges from the bearish trend in September through the beginning of October, showcased by the red bearish trend, one can see hints of green developing, indicating that a strong bullish trend is likely imminent. Additionally, one can use the Stochastics Indicator as a confirmation of potential bullish entry areas when the fast crosses above the slow and bearish points of entry when fast crosses below the slow. As we approach the U.S. winter crop season, it appears corn could pop to new highs again and it will be interesting to see how this may affect other markets dependent on this commodity.
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