FTSE 100 today: Stocks close lower, but miners lead; oil rebounds on Hormuz fears
Corn
From last month's commentary 7 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 (now 392) 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 & Medium MAs (370 and 377 respectively) that it would require a lot more than what happened this week to turn this market Bearish.'. Yet how wrong did it seem for the first two and half weeks of Apr as we formed a Pipe Top and looked like we'd formed a Double top whilst going below the recent 50% Fib as well as all the Tines.
We only halted the decline for two reasons. The first is the Crossover of Tines during the week before last...it's the circled area on the Daily Chart above. I've written and given seminars on the importance of Tine Crossovers being areas of potential major and significant volatility and also areas of potential change in Trend or Trend reinforcement. In this case it was Trend reinforcement and led to that week being a Weekly Key Reversal Up. We've followed on this past week with a single close over the 2017 high at 406...one would hope that isn't all such a Bullish market would be capable of....so where now? Well...after the 406 level I've really very little till the Upper Tine of the Aug - Dec 2017 Andrews Pitchfork (currently 418) and then the 50% Absolute Fib at 424.
There's some small resistance at 425 and then nothing till the Upper Tine of the Sep 2016 - Aug 2017 Schiff Pitchfork (currently 430). Downsid e there's a whole mess of support but key within this are 392 (dynamic), 385, 382, 379 and 377 plus the Medium and Long MAs. All but one MA is pointing upwards and the odd one is sideways...nevertheless...I'll add a question mark to the bullet point to make it mildly Bullish from fully Bullish.
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