July Corn Rising

July Corn Futures confirmed a new Bullish trend on the Daily chart. Here's what I see:

• Bounce off 50sma
• Morning Star candlestick pattern
• Close above 8ema
• Scoop pattern
• Gap up today
• Close above all MA's

Targeting the 127.2% Fibonacci Extension = 794 3/8, which is within the expected AB=CD pattern.

Put the Stop just under the recent swing low at 602 3/4.

Using the smaller YC ($10/pt) contract because we haven't closed above the recent swing high yet. Also, where I want to put the Stop, the risk would be too high with the full sized $50/pt contract. Went long a contract at 689 1/4 14:14 ET.

Summary:

Enter: 689 1/4

Stop: 602

Target: 794

Risk: 689 1/4 - 602 = 87 1/4 x $10/pt = $872.50

Reward: 794 - 689 1/4 = $1,047.50

R:R 1047.50/872.50 = 1.2:1 not great but acceptable.