We've discussed Corn a lot in previous posts here and this past week it finally made a strong breakout. I'll be looking for price action signals to be long after small corrections. Targets 333 (still not reached) and 350. Let's see will this be a strong uptrend.
Wheat has found the higher short-term low we've been looking for. This happened when Thursday's price broke above Wednesday high. Like CORN the COT setup here was a short-term and a swing-term one. Here we also have a good accumulation and seasonally strong period. How long this move will last is hard to say but the last top (05/21/2020) is penetrated I think we can set 544 as a new target.
After I was kicked out my position in the last Friday I've used the next price action signal to enter again. On the chart below you can see my open position with 3.36% profit.
The stop-loss is currently on break-even because I want to give some room to the market to breath. The configuration of daily bars (candlesticks) plus good accumulation (OBV - green line) could lead to more gains here. The next target is around 3130.
If on Monday the price breaks above Friday's high (green dotted line) we should see an up day with 65% probability. That would be a price action signal but a simple one. That is why I won't be adding more contracts to the position. Breaking the red dotted line will most probably lead to an inside day.
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Seasonal indicators courtesy of Larry Williams, ireallytrade.com. Charts made with TradeStation®. tradestation.com
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