Corn is working well. As an FYI this (ZC1!) is the continuous contract and is priced a little different than the DEC contract. However, the patterns are still the same and they are both working well. We are still long and looking for the gap fill (on continuous contract). We could see some sideways to down movement over the next few days before we start to see another leg up. Trade well!
I agree with your trade, I am long corn too. However the major trand is still bearish, so keep in mind this is a retracement what we'll see from this bottom building. It may develope to a bullish trend later, but it's too early to see that. I expect 8-10 % correction from recent low, to abt. 390-400 lvl on continous contract, which is about 10-11 USD higher on dec futures.
One more note: check the upper and bigger gap (between 385-394)! I think in fact that one doesn't exist in reality. In my trading system the chart doesn't have such a gap there. First when I put my corn idea out here, I also marked that as stg to be filled once, but when I checked in my trading sytem, it showed diffrent picture, with no such a gap. It must be some kind of data source mismatch I think... Or who knows.
Anyway, the range break on the top brings corerction in our way :-). My system gave confirmed buy signal on 4 Hrs chart yesterday. So good luck with the long for all of us!
OffTheFloorTrader
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Kumo...I agree with everything you said however keep an eye on the seasonality of the grains. I cut my teeth trading physicals in the grain market (and derivatives). Even though I am technical focused you can't ignore physical supply and demand of the grains. They can be tough but I think we are in a good position being long. However, they may be bottoming a bit early so I look for sideways to slightly down. If it dips below the lows I will look for another place to start buying. Once harvest begins (late August - early Sept) we should see a reversal somewhere around mid to late Sept. I like the harvest trade for a bigger move...keep up the good work!
One more note: check the upper and bigger gap (between 385-394)! I think in fact that one doesn't exist in reality. In my trading system the chart doesn't have such a gap there. First when I put my corn idea out here, I also marked that as stg to be filled once, but when I checked in my trading sytem, it showed diffrent picture, with no such a gap. It must be some kind of data source mismatch I think... Or who knows.
Anyway, the range break on the top brings corerction in our way :-). My system gave confirmed buy signal on 4 Hrs chart yesterday. So good luck with the long for all of us!