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FUT RT's
Take a look at Dec bean oil. It has just marginally broken the upper trend
line in a rising wedge.
The rising wedg is usually considered bearish, but (I think I have
mentioned this before) the last year I have seen numerous examples where
the wedge is broken upside, with a dramatic rise to follow.
The break looks marginal in Trading Day mode but more convincing in
Calendar Day mode. And if you chnge to Closing Price mode it looks
convincing.
Check out open interest! Rising with rising price.
And if you have candle stick - the day before yesterday was a convincing
outside day. Which would classify yesterdays gap as a "Runaway Gap", with
higher price to follow.
Now - if we look at TIME (!) I am using a system similar to Rick's only I
use Dynamic Trader instead. With two different aproaches(both fib!) I find
that PROBABLE (!) trendchange will occur on a) oct 29 or b) 2-4 Nov.
Hence the trend should go on until at least oct 29.
With a probable explosiv upside break-out this could be a very rewarding
trade, with a stoploss at 24.50 of just about $400.00.
Checking out Nov Beans it looks like it has stopped at a perfect 38,2%
retracement, wich should further support bean oil (at least it won't hamper
a positive development)
I have placed my buy stop order at 25.50.
Good luck
Stig
The above post I sent to RT yesterday - but evidently it didn\t get
through. So I'll post it again, since the opportunity is still there.
Yesterday I didn't get in on my stop order. BO went to 25.48 and then
closed the gap (almost). Right now 15 minutes after BO opened Friday the
price has gaped up and is trading at 25. 35. so I have placed an order to
buy at the market. When filled I will place a stop and reverse at 24.5
since that will break the most recent low as well as being below the lower
trendline of the wedge. We all know that breakdowns out of wedges USUALLY
are fast moves, and so are upside breaks. so with a stoploss of $400.00 we
should have a reasonable return (if we play it right later - it's not over
until it's over....)
Good luck again
Stig
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