11/03/23 Double Bottom or Bust

December corn futures fell to within a quarter of a cent above their September low before rallying higher on Friday morning. Holding the low is important because of how it had lined up with expectations for seasonal lows usually being established in late September. The price action was also significant technically because it suggested the possible development of a double bottom on the chart. Double bottoms involve the retest of a major low that precede an eventual trend change to reverse prices higher.   While the corn chart look had been decidedly negative for over the last two weeks, there are some signs of bullish divergence building since recent price lows have not yet been accompanied by extreme readings for the volume and momentum indicators. The concept of bullish divergence can be a bit misleading because it implies that traders are becoming bullish when they could just be turning less bearish. For corn and wheat, the idea of being less bearish but not any much more bullish fits with the reality of their having been a complete lack of fresh fundamental news lately. Technically, the path of least resistance has been lower and the speculators are waiting on something new…