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Corn Elliott Wave Analysis

Function - Trend 

Mode - Counter-Trend

Structure - Expecting Impulse Wave 

Position - Wave 3

Direction - Wave 3 is still in play

Details -Wave 3 has completed its 4th sub-wave which should be contained above 444’6 before the current big surge to complete wave 3 of (3). The bullish impulse sequence from 394’6 should extend higher provided there is no breach of 444’6. Not much has changed since the previous update.

Corn has surged over 20% from its February 2024 low, following a prolonged 22-month sell-off that saw the commodity lose approximately 59% of its value. Despite this notable recovery, it remains modest when compared to the preceding bearish dominance. The critical question now is whether this is another minor retracement leading to further sell-offs or the beginning of a significant recovery that could surpass previous levels since the bearish cycle began in April 2022.

On the daily chart, the bearish cycle from the April 2022 high of 824 was characterized by an A-B-C corrective structure. Before reaching that high, Corn experienced a much longer bullish cycle. It's reasonable to anticipate that the bullish trend prior to June 2022 might resume if the bearish cycle from June 2022 was merely a retracement. Now that we can confirm the completion of the sell-off from June 2022, we can expect an impulse wave recovery or at least another A-B-C or W-X-Y recovery pattern.

The recovery from February 2024 is evolving into an impulse wave. This impulse wave could be interpreted as the first wave of any of the expected combinations discussed earlier. For simplicity, let's consider an A-B-C recovery. Thus, we can project the current bullish impulse to advance higher, completing the blue wave 'A' on the daily chart. This suggests that Corn prices have significant potential to rise further in the coming weeks.

On the H4 chart, we zoom in on the sub-waves of the current recovery from 394. It appears that the price is in the final leg of wave 3 of (3). Wave (3) is anticipated to reach at least the 500 major level, where the price might encounter some resistance, prompting a wave (4) correction. Consequently, the primary degree wave A (blue circled) on the daily chart is about halfway completed. Given this outlook, Corn prices are expected to favor buyers in the near and medium term. Therefore, the recommended strategy would be to buy pullbacks along the bullish trend, aligning with the overall upward momentum.

Technical Analyst : Sanmi Adeagbo

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