Corn's strong rebound for the past two days appears to have shown that the 50% fibonacci level has held. If today's rally closes above the Exponential Moving Average, and prices continue to rise tomorrow, then a bullish signal will be confirmed for me. Note also in this chart that the Klinger Volume indicator has been in a bullish divergence pattern for nearly two weeks. Buying has been building, despite the lower prices over the past few weeks. When such a divergence appears, I will automatically set my stop above the most recent candle. That way, if a reversal occurs suddenly or strongly, I can keep the vast majority of the profits obtained up to that point.Wednesday, August 13, 2008
Corn Rallies Off 50% Fibonacci Level
Corn's strong rebound for the past two days appears to have shown that the 50% fibonacci level has held. If today's rally closes above the Exponential Moving Average, and prices continue to rise tomorrow, then a bullish signal will be confirmed for me. Note also in this chart that the Klinger Volume indicator has been in a bullish divergence pattern for nearly two weeks. Buying has been building, despite the lower prices over the past few weeks. When such a divergence appears, I will automatically set my stop above the most recent candle. That way, if a reversal occurs suddenly or strongly, I can keep the vast majority of the profits obtained up to that point.
