Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in Corn Futures ( ZC1!).
Trend Analysis
The main view of this trade idea is on the 2-Hour chart. ZC1! Hit some resistance around the 572’2 price level and is expected to move lower in the short term. This resistance is a lower high on the commodity and is expected to make another leg lower.
Technical Indicators
ZC1! is currently above its short (25-SMA), medium (75-SMA) and fractal moving averages. This price increase appears to be a counter trend move of an overall decline in the commodity. The RSI was overbought and is now trending lower towards the 50 level. Moreover, the KST is also displaying negative divergence as the indicator had a negative crossover.
Recommendation
The recommendation will be to go short at market. At the time of publishing ZC1! is trading around 563’4. The short- term target price is observed around the 548’6 price level, towards the medium term SMA. A stop loss is set at 572’2. This produces a risk reward ratio of 1.56.
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in Corn Futures ( ZC1!).
Trend Analysis
The main view of this trade idea is on the 2-Hour chart. ZC1! Hit some resistance around the 572’2 price level and is expected to move lower in the short term. This resistance is a lower high on the commodity and is expected to make another leg lower.
Technical Indicators
ZC1! is currently above its short (25-SMA), medium (75-SMA) and fractal moving averages. This price increase appears to be a counter trend move of an overall decline in the commodity. The RSI was overbought and is now trending lower towards the 50 level. Moreover, the KST is also displaying negative divergence as the indicator had a negative crossover.
Recommendation
The recommendation will be to go short at market. At the time of publishing ZC1! is trading around 563’4. The short- term target price is observed around the 548’6 price level, towards the medium term SMA. A stop loss is set at 572’2. This produces a risk reward ratio of 1.56.
Trade closed: target reached:
Move Stop Loss to Breakeven and Monitor Price movements and new Trade Idea