May Corn Rise

We're in way early on this one. Really it was the turn around on the Wheat chart that brought me to this trade. Here's that chart from today:

I checked soybeans as well, but it looked like corn had the best, cleanest, strongest set up, so I waited until just before the 14:20 ET close to make sure the pattern didn't change, and went long at 549 1/2. I used the YW mini contract because we're getting in so early. It would be a safer trade if we waited until price closed over the 572 swing high.

The setup is a possible AB/CD pattern with today and the previous trading day forming a Kicker candlestick pattern. The Daily chart has been in a general uptrend for many weeks. And Stochastics took a dip to the mid range which gives us some renewed runway.

I don't see any grain specific reports due out this week at www.usda.gov/media/agency-reports.

Notice the calculated D point of 600 3/4 is just over the 593 27.2% Fibonacci Extension and at a round number of 600. Three good targets would be 593, 600, and 619 3/4 which is the 61.8% Fib Extension. To be conservative, I picked the closest, which is 593. The actual target is a limit order at 592 3/4 to account for Bid/Ask Spread and slippage.

The Stop is at 523, just under the C point.

If we clear the B point and look like we're continuing upward, I'd like to add to the position.

Summary:

Entered: 549 1/2

Target: 593

Stop: 523

Risk: 523-549 1/2 = -26.5 * $10/pt = -$265

Reward: 593 - 549 1/2 = 43.5 * $10/pt = $435

R:R = 435/265 = 1.64:1 Not great but acceptable.