May Corn Bullish Report

There's a lot on this chart. You can ignore most of it. This trade is based on just 3 things.

1. There was a sideways consolidation back to Feb. The top is approximately 558.
2. There was a very bullish "Grain Stocks" report that came out 3/31/21. B/O consolidation.
3. Next day (today) we gapped up at the open, rose a little further, then
• Filled in the gap
• Tested the top of the consolidation
• Closed above the consolidation and all Moving Averages

The simple thesis is we're going to bounce off the consolidation and make a substantial move upward.

We entered near the Open at 8:25 ET, when it appeared price was going to continue upward. Entry price was 577 7/8. 

Anticipating a gap fill, we entered a Limit order at 565 near the bottom of the gap, which was filled at 11:23 ET. Since we wanted to place the Stop below the recent swing low, and wanted to use at least 2 entries, so we used the YC mini-contract ($10/pt) rather than the full sized ZC contract ($50/pt).

We're targeting the 61.8% Fibonacci Extension at 620. Stochastics are still mid-range, so there's plenty of runway.

Notice the Bollinger Bands have been inside the Keltner Channel for many weeks. The longer the consolidation, the bigger the Break Out. Louise Yamada says "The longer the base, the higher in space".

Summary:

Entry: 577 7/8 and 565.

Stop: 531

Target: 619