July Beans have been in a bottoming consolidation for weeks, as part of a descending triangle. Today's candle may indicate a breakout to the upside. Here's what I see:
- Bullish Engulfing candle (double).
- Engulfing past 2 days bearish candles.
- Actually engulfs past 7 candle bodies.
- Morning Star-like candle pattern.
- Closed well above the Trend Line.
- Closed above 8ema.
- Large volume.
- Plenty of room on stochastics.
Those are the bullish indications. However, today's high rejected off the 34ema, and we have the 50sma hovering over us that could provide resistance. If we can clear those 2, it looks like pretty clear sailing.
Due to the pent up energy from a long consolidation, and a possible BB/KC breakout, this could be a good size move. So, if things go well, I may move the target higher as we progress.
Entry 847 1/4.
Target 50% Fib 869.
Stop 830.
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