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RT's
IMHO an excellent buying opportunity in March Corn.
Enclosed you will find a gif with a weekly chart (backward adjusted by
"Unfair Advantage")
Elliotwave is not my strong side, but it looks like we presently are in
wave c of 2(is that how you label it?)
Anyway,
We have retraced 50% of Wave 1
This level is incidentally a 61.8% retracement of wave C from B as well.
In addition to that support, please note how two important trendlines meet
at the exact point where we are right now.
1 The neckline of a large Head & Shoulder pattern (SHS)
2 The lower support line of an Andrew's Pitchfork channel
On a lower level (not shown) we can see that we had a break out of a
falling wedge on the "Wrong" side (12/12). With the facts above I, however,
think that this may bee a false breakout; it was followed by a bearish
outside day which should have generated an accelerated fall yesterday,
however we saw a doji with the high= the high of the day before. Not a sign
of weakness in my opinion.
Furthermore we are in a Mercury retrograde period, which often generates
whipsaws and confusion (was the march sugar break out downside from wedge
also a false one........ hmm perhaps, we'll see).
I you are interested in Astro arguments, Norman winski has an interesting
discussion with regard to corn in this period in his Astro Trend.
Saturn went Direct two days ago, I am not sure if Saturn influences Corn,
but some markets changes trend or accelerates at these events (Coffee Yen
on the exact date). It could be corn also CIT can be delayed a couple of
days.
So I'm putting my fortune on Long Corn today. I am placing a Stop and
Reverse order going long at 273,5stop!!!(the high of yesterday and the day
before =273,4)
You see I sold (!) Corn yesterday on the presumption that the downside
breakout was real (I didn't see the things yesterday that I write about
today....).
My change of opinion will cost me $150 if I get filled tomorrow. I will
then put a stoploss at 269.75.
With regard to the discussion earlier with regard to placing stopplos
orders with your broker or not, I would like to quote Robert Miner who
says: If you don't use stoploss, you are not a trader. You are an Idiot!
So what are you folks out there???
If we are at the end of wave 2 and entering wave 3 this should be a very
low risk high reward trade Wave 3 being the most volatile and dramatic af
the impulse waves.
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