From a ‘30 year cycle’ point of view, corn is starting to look very interesting. While it could still take several weeks to see if corn will bottom above the 360 price level, this is a market that could offer a low risk/high reward trading opportunity if
the October 2015 corn pattern continues ‘shadowing’ the October 1985
corn pattern. As highlighted on the first chart below, corn bottomed in
October 1985 and then rallied into December 1985:
December 1985 daily corn chart
December 1985 corn futures reached an initial low on Sept 4 that was tested the following week. As the chart shows, following the re-test of the Sept 4 low
corn rallied and - over the next two weeks - was able to trade back up
above the 10 and 13 day EMA’s. Also noteworthy is at that time corn was
bottoming, the 10 and 13 day EMA’s (red/green lines) were positioned
below the 55 day EMA (blue line) and corn was trading below all three
EMA’s.(more)
No comments:
Post a Comment