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Sellers in the Grain Markets Are Now Exhausted

June 20, 2018 by Jim Wyckoff

See on the daily bar chart for December corn futures that price action on Tuesday saw prices drop sharply to a contract low. However, by the end of the session prices had rebounded well off the low to close nearer the daily high. This extreme price action produced a bullish selling “exhaustion tail” on the daily chart, whereby the sellers became exhausted at lower price levels and prices immediately pushed back higher. Other grain markets also posted selling exhaustion tails on Tuesday. The price action Tuesday in the grains is a solid clue that those markets put in at least near-term lows, if not major lows. More strong selling pressure this week would negate those bullish chart clues seen on Tuesday, and be an ominous signal for grains in the coming months. But it’s my strong bias the grains have put in near-term market lows. Stay tuned!

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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