Reader “gatorsun” asks about corn and wonders if a potential low in the commodity will equate to a top in animal food producer, Tyson Foods.
I have charted corn before, but the seemingly inevitable tradable low never did materialize. Instead, the soft commodities remain in stubborn downtrends.
Updating the CORN weekly chart, first below, you can see the potential for an upside reversal given last week’s high buy volume engulfing candle. Of course, that elusive upside confirmation of the reversal is going to be necessary. But sooner or later the softs will indeed stage a snapback rally for more than a day or two, even within the context of a strong downtrend.
Next, TSN has been so good, that I would argue it is now bad. See my notes on the second chart, below, dating back several decades.
In sum, I agree with gator with the thesis looking out into the coming weeks.
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well done chess..thanks for the fine work
you bet, gator