CommodityTrends Weekly Newsletter
Dec Corn formed a #1 bottom point at 425-6, the June 30 low, inside a weekly chart support zone and directly at a monthly chart support level. It later produced a new #2 point at 474-2, the July 16 high.
Although the full 1-2-3 strategy criteria have not yet been met, price has already rallied to a weekly chart resistance level at 490. Just above that level is the lower edge of a weekly chart resistance zone. Because price is now approaching this area of resistance, I am going to stop watching for the 1-2-3 formation to fully develop.
In the interest of full transparency, I had previously taken a position in December Corn. The profit target on that trade was reached yesterday, as reported in my Daily Trading Video.
Dec Soybean Oil has formed a #1 top at 74.55, the June 3 high, followed by a #2 point at 64.62, the June 18 low. A new #3 point has now formed at 73.82, the July 26 high.
For a more detailed explanation of this setup and how I plan to approach it, please refer to the Daily Trading Video. Any additional trade updates, including the exact entry, stop-loss, and target levels, will be provided at that time.
In the interest of full transparency, as I mentioned last week, I had previously taken a long position in this market and reported it in my Daily Trading Video. I was stopped out of that position on July 26 with a nice profit.
To allow more time for a potential trading opportunity to develop, I have stopped watching Aug Gold and moved my focus to Dec Gold.
Price is currently trading near the bottom of a large flat-bottom triangle, which is typically considered a bearish chart pattern. It has also formed a much smaller sideways channel inside the larger triangle.
For now, I’ll continue watching to see how price moves out of these patterns.
Sep 10-Year T-Note formed a 1-2-3 bottom inside a sideways channel, including several different #2 and #3 points. On July 26, price broke below the channel but has since rallied back inside it.
During that brief downside breakout, a new #1 bottom point developed at 108-005, the July 26 low. For now, I’ll remain on the sidelines and continue watching how the pattern develops.