Dec Corn looking healthy today. Opened with a gap up, then filled the gap with a retest of the 3ema, and continued on with our upward price action, closing above the same MA's as the previous trading day. If the BB/KC Squeeze Breakout continues to work, we can expect about 3-5 more positive candles.
However, stochastics are now quite overbought and volume dropped a little. These are of some concern but not a good reason to exit.
Also, today we formed a Doji candle. This is not what we want. It indicates the bullish move has lost some conviction, but its a Monday, so we can give it a pass. However, the Doji could be the top of an Evening Star formation, which would require a down candle tomorrow. These things are also of some concern but not a good reason to exit.
When looking at the increasing separation between closing price and the 8ema, combined with high stochastics and a Doji candle, I can feel the fear talking to me "Get Out with the profit you have!", "You can always get back in.". But I'm fighting that fear and holding the position. We don't want to miss out on a gap and run tomorrow.
There is some reassurance from seeing the potential support from the 50sma, 8ema, 34ema, 20sma, and the upward Trend Lines all beneath us, just waiting to reject a pull back. And the fact we're in the middle of BB/KC Breakout. Of course, I'd rather just see a straight line up to the target, but that would be rare.
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