May Oats is building a bullish Gartley pattern. On Friday it rose out of a wedge pattern and stayed up. Next upside for the bulls is at 254'2 which is major resistance. This would also be fulfilling a H&S that is still intact. But H&S only show results 30% of the time in my experience, so a double top isn't out of the question.
Open Interest Rule 6—If prices are in a congestion range (tick) and open interest is falling (tick), this is a bullish sign.
The reason: professionals who are more likely to be short, are covering. The weak hands are throwing in the towel.
I am neutral as we still may see some up and down, uptrend was broken, H&S still intact and 20 day moving average is turning bearish.
Open Interest Rule 6—If prices are in a congestion range (tick) and open interest is falling (tick), this is a bullish sign.
The reason: professionals who are more likely to be short, are covering. The weak hands are throwing in the towel.
I am neutral as we still may see some up and down, uptrend was broken, H&S still intact and 20 day moving average is turning bearish.
Comment:
Oats looking tipsy. Might produce a flag or start moving downward tomorrow. Using previous uptrend line as resistance.
Comment:
Oats met Gartley condition today, but unfortunately we will probably see a double top around 260 tonight or tomorrow. Oats is extremely bullish right now so further upside maybe in the future for this market, signifying a possible butterfly. That would take us up to the 268 area.
If fail and Gartley intact, we would move into the last leg.
If fail and Gartley intact, we would move into the last leg.
