Corn: A long gradual increase in price from the $5.30 price level

Renewed weakness in the US Dollar following a dismal monthly unemployment report on Friday helped to spur the grain complex back into rally mode, with strong gains seen in wheat, soybeans and corn. The higher close in the corn futures was enough to execute a breakout signal to the upside, with a completion of a Rising Wedge chart pattern on the 240-minute chart.

Following a long gradual increase in price from the $5.30 price level, the market began forming the rising wedge with a series of higher lows and higher highs over the last several trading sessions. The late development of the lower support trend line of the rising wedge reduces the overall technical integrity of the chart pattern. However, the orderly completion of the formation helps to encourage the possibility of a continuation of the breakout towards the target zone.

The low Initial Trend reading and the average Quality measure of 5 bars is offset by the high marks in both Uniformity and Clarity on the Autochartist platform. Initially, the projected price forecast from the breakout is for a minimum of $5.62 a bushel, but the potential remains for much higher prices.

(Source: http://www.fxstreet.com/technical/forex-strategy/daily-commodities-update-technical/2010-12-06.html)