FTSE 100 today: Stocks rise as miners lead; oil rebounds on Hormuz fears
Corn
An interesting past month as we finished the final portions of the Double Bottom - Adam & Eve and rallied thereafter towards the Target for the move at 393...which was swiftly achieved. Then...a few days later...once done and almost on cue...we fell. Despite changeover it was an interesting drop as we then side-lined and in the process formed one of those rare patterns - a Diamond Bottom. Now Diamond Bottoms are typically Bullish...about two thirds are. Yet this one was in the wrong place and therefore could be seen as a possible Bearish Flag. I knew the size of the move was going to be the height of the Diamond...about 11 Cents...I just wasn't sure which way. Anyway, we duly broke towards the end of the Diamond and it was in the traditional way...up! We'd rallied up to a new high and then...we stalled, formed a Pipe Top and looked like we'd come down yesterday anyway.
Then the news broken early yesterday and we really fell...a lot! Right through the recent 50% Fib at 389 and almost to the support of the 50% Fib of the whole 2016 action at 379.
I'm fairly certain that the residual support of the previous Diamond Bottom plus this 50% Fib were the final reasons we slowed and halted. We then turned around and very Bullishly closed back over that key recent 50% Fib at 389. This was a significant Bullish signal after the news of yesterday. Today, we've tried higher and we're back up near that Pipe Top territory. I am reasonably certain that the move down washed out any stale Bearish interests and the strength of the Bullish ones shone through. We are back over major Tine and Fibs and seem likely to test the 2018 high again. Only two consecutive closes below the 50% Fib at 389 would counter that. Topside, the 2017 high at 406 seems a suitable near term Target.
Longer term...we are so far away from the Long and Medium MAs (both at 368) that it would require a lot more than what happened this week to turn this market Bearish. Bullet point stays fully Bullish for the moment.
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