Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Corn ETF Holds Support: Time To Buy?

Corn ETF Holds Support: Time To Buy?Bargain shoppers have arrived early on Wall Street ahead of Black Friday as last week’s brutal sell-off has left the marketplace scattered with ripe opportunities for seasoned veterans not shaken up from all of the volatility. Renewed optimism from President Obama that Congress would strike a deal before we drive off the “fiscal cliff” has been a major catalyst behind this week’s bounce, while encouraging housing market data has also brought the bulls back to the equity front [for more economic news and analysis subscribe to our free newsletter].

Chart Analysis

After enduring a prolonged pullback over the last two months, the Teucrium Corn Fund (NYSEARCA:CORN) has recently pumped the breaks at a major support level and appears poised to bounce higher.

Corn ETF Holds Support: Time To Buy?

Click to Enlarge

Since peaking at $52.71 a share on August 21, 2012, Teucrium Corn Fund (NYSEARCA:CORN) has posted a series of lower-highs (red line), which is worrisome; however, this ETF has also managed to hold its ground above the $46 level (blue line) on several occasions. Although recent price action has been mixed, the fact that CORN has been holding above $46 a share is encouraging  because it previously bounced off this level on July 11, September 27 and most recently again on November 16, 2012 [see Most Popular Commodity ETFs].

The fact that CORN has posted lower-highs but remained above support suggests that buyers are enticed at the $46 level; this means that jumping in long offers lucrative upside potential, however, a break below this support level may also welcome accelerating selling pressures that could sink Teucrium Corn Fund (NYSEARCA:CORN) to its 200-day moving average (yellow line) near $44 a share.


If corn futures stick to the medium-term downtrend at hand, then this ETF could sink further; in terms of downside, CORN has immediate support at $46 a share followed by the $42 level. On the other hand, if bullish suspicions prove true, Teucrium Corn Fund (NYSEARCA:CORN) may have the wind at its back. In terms upside, this ETF may face resistance around $48 a share followed by the $50 level. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.

This article was originally written by Stoyan Bojinov, and posted on CommodityHQ.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.