Corn Cup Forming - Update 3

Today's price action is just like the previous trading day, except a little better and a little worse.

It's a little better because we:

• Dipped down and retested the 8ema then bounced back up and closed higher than the open.
• Closed higher than the previous candle's high. 
• Closed above the Trend Line. 
• Closed at a higher high (440) than the high at the beginning of the cup (439 1/2). 
• Higher volume than the last 9 candles.
• BB/KC breakout has begun. (See Bollinger Bands / Keltner Channel cross on chart below.)

Its a little worse because we:

• Are even more over bought.
• Entered an area of potential volatility.

By "area of potential volatility" I mean the area where you first breach the previous swing high of a cup formation. It's often an area of volatility. Sometimes you just punch right though it and keep running. Other times you have a false break out and start to retrace a bit. Sometimes the false break out turns out to be a double top (bad for our trade) and sometimes it starts a "Handle" in a "Cup and Handle" pattern (good for our trade). I've also seen a straight out crash from a point like this.

Overall, the odds favor a continuation upward. The BB/KC Squeeze breakout is supposed to typically last 5 -7 candles. The big question is; will we continue upward long enough to reach our target at the 27.% Fib extension. Which now is beginning to look like it will coincide with the top of the channel by the time we make it up there.