Today’s technical analysis brings us to a less-followed commodity — corn — which has been moving sideways since the end of October. Although at first glance this consolidation may appear uneventful, the structure behind it is anything but meaningless. The price action has formed a diamond formation, a rare but highly respected technical pattern due to its historical reliability and the strong directional moves that often follow its completion.
The diamond reflects a market in transition — expanding volatility followed by contraction — and typically signals that a decisive breakout is nearing. Corn has been oscillating within the boundaries of this formation, and momentum is building beneath the surface. The strategy here is straightforward: wait for the break. A move above the upper boundary of the diamond would generate a buy signal, opening the door for a bullish continuation. Conversely, a breakdown below the lower boundary would activate a sell signal, suggesting the start of a deeper move lower.
For now, patience is key. As long as corn remains inside the formation, no clear directional bias is justified. But once a breakout occurs, the market should present a clean, actionable opportunity.