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Re: methods/Lee
In Response To: Re: methods/roger/Trades ()

Well this chart would definitely 100% have me 'short' on Friday's close. Price has clearly broken below 672 support. Looking at this same set up the last 5 times you can see price comes back to the previous high breakout support area but often drops a little below or not all the way to it before it bounces back. That is the bulls and bears fighting it out at support. So some leeway must be allowed for it such as the Feb set up that would have been hard to catch intraday as it didn't actually tag support before it took off again. So to catch it each time one needs to get on 'near' support. I would have been stopped out Friday had I wished to trade this. BUTTTTTTTT there is a bearish difference this time with the gap down and close below the 672 support line. I think support is broken and price is likely to drop to next support at 640 and perhaps bounce back to 672. Doesn't matter how it plays out as the question is whether it broke support and is going to sell off or didn't and is going to bounce back. You asked what would make me turn bullish and the only thing would be for a gap back up which would turn the last two bars into an Inverse Island Reversal which is very bullish and highly reliable and shows a refusal to breakdown. Then you have all the bears covering their shorts with the bulls jumping on chasing them and one hell of a rally. That is the only way I'd get bullish. So Monday would need a 'close' above 672 to suggest support wasn't broken and prices are going back up. As far as trading goes I can trade the ETF:CORN the same way and has exactly the same chart pattern. It sells for about $40. There is also other ETFs like JJG which is a basket of the 3 main Grains as well. Lots of choices with them all.

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Re: methods/Lee