Corn - Flat bottom, short potential in case of breakout
Corn is showing a flat bottom triangle pattern. The period of the wave is getting shorter and shorter and the wave is getting enclosed at the end of the triangle. We may see a breakout before March and that would provide a clear signal for selling. For increased confirmation, we may wait for a level that was present just below the triangle and defined by the SSB of Nov 2014. Ichimoku: we see that the cloud provides a strong resistance. Breaking of the Kijun will be the first alert before the breakout, patience is required.
Two scenarios for the short: either use the supports as main targets or rely upon the height of the triangle as guideline. Both could be combined with 50% closing at 344 and the rest at 306. I put the SL at the Kijun for the moment on the chart but as soon as the breakout occurs, it can be tigher. Ichimoku cloud SSB could be used for that purpose.
Two scenarios for the short: either use the supports as main targets or rely upon the height of the triangle as guideline. Both could be combined with 50% closing at 344 and the rest at 306. I put the SL at the Kijun for the moment on the chart but as soon as the breakout occurs, it can be tigher. Ichimoku cloud SSB could be used for that purpose.
Comment:
If you follow this idea, see how the last candle collided against the top of the triangle. We may have the last half-wave before the breakout now. It could take 15 candles or so...
Comment:
Things going fine :)