Type:
Bearish Drop
Key Levels:
Resistance: 625'2
Pivot: 588'4
Support: 560'6
Preferred Case:
On the H4, with prices going within the descending trend, we have a bearish bias that price will drop from the pivot at 588'4 where the 61.8% fibonacci retracement is to the 1st support at 560'6 where the swing low is.
Alternative Scenario:
Alternatively, price could break pivot structure and rise to the 1st resistance at 625'2 where the swing hifh and 61.8% fibonacci retracement is.
Fundamentals:
Since both countries, Russia and Ukraine, are major exporter of agriculture goods and their persistent war will lead to a shortage of agricultural goods and give us a bullish bias for corn. We'll need to exercise caution for this setup because our fundamentals and technicals are not completely aligned.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.