There is an interesting bullish pattern popping up in the agricultural markets. It's a pattern I spotted in gold in February, but now I've found it in at least two agricultural markets.
Soybean Futures - Cup & Handle
Let's start with a soybean futures chart.
The soybean futures price hit an all-time high of $17.89/bushel in September 2012. After that, it started to collapse in several legs to the downside, losing half of its price by September 2015. Continue reading "Bullish Pattern Spotted for Two Agricultural Futures"
By: Chris Wilkinson of Longleaftrading.com
Corn has been in an upward trend since it put in its lows at the beginning of October. From there the chart has traded a series of measured Fibonacci levels all the way into profit targets each time. Last week's correction brings us right at the next Fibonacci sequence to take a long position and stick with this trend.
For a review of the previous Fibonacci sequence that traded into profit targets we draw the Fib tool from the lows of November 19th (362.5) up to November 28th highs (393.75). With this drawn you can see the market pulled back and found support right on the 50% level and traded directly into its first and second profit targets, the -23.6% Fib level and the -61.8% Fib level. See the Chart below.
4 Hour Chart Corn
Now that the previous move has corrected we continue to draw the next series until we get to one that fails the 61.8% level. A failure happens when we get a strong close on a large time candle. An hourly close or higher is sufficient to call it a failure. Normally smaller time frames will trade back and forth around those levels so I look to larger time frames for confirmation. If a failure happens it is assumed the trend is over and the next one begins in the opposite direction.
The next move found by using the Fibonacci tool is drawn from the support of the previous move. We use the lows of December 3rd (377.25) and draw it all the way up to the new highs on December 29th (417). See Chart Below. Continue reading "Chart of The Week - Corn to Move Higher"
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with MarketClub TV for Wednesday, the 20th of February.
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Often times it is easy to get carried away with looking at what is front of us to forget what is around us. Let’s begin this today acknowledging the price action of late in the corn market has been lackluster at best. After such a robust market move this summer, where we saw record corn prices at $8.41/bushel’ the market has been consolidating that move since. The threat of the extreme dryness ended as we moved into harvest in the late fall and that sent a huge percentage of long specs to the sidelines.
We now sit at $6.85/bushel and most of the news flow remains negative. Commercials are not anxious buyers of corn and the demand numbers of late have been week. Calendar spreads (March/May) do not provide elevators an incentive to sit on their stocks looking for a time to sell in the future. This has pushed a lot of grain forward to the cash market, suppressing the price.
Weekly export sales have also been very slow. Last week came in at 49,100. Because the market needs to see sales at 464,000 tonnes to reach the USDA forecast, this leaves the market in need of a lot of foreign buying to get back on track to meet that forecast. Continue reading "Commodity Chart of The Week"
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