Decided to exit the position for the weekend, and capture some profits while avoiding headline risk in a volatile market.
I suspect we'll get a pull back before hitting our target at 744. We're completing an AB/CD pattern, which is expected to offer some resistance. The precise D point is 728 3/4 with the calculation shown on the chart. In addition, a little higher than that, there's a swing high at 733 1/4 (see the thin white parallel lines) which also offer resistance. That swing high is right in the middle of substantial congestion in the recent past (again, see the thin white parallel lines).
If we got a pull back early next week, it'll be problematic because there's a market sensitive Ag report due out Thu 9/30/21 named the "Grain Stocks" report. We'd want to be out of the market before that report hits. We may be significantly lower than where we are now if we get a pull back before the report.
(https://usda.library.cornell.edu/concern/publications/xg94hp534)
So, I think the best strategy is to take our profits, avoid any bearish news over the weekend when the markets are closed, wait for a pull back due to the resistance I described, then get back in after the Ag report for the ride back up to our target. We already did exit and re-enter once, which turned out to be a good decision.
The chart is still quite Bullish. We made a higher low and a higher high then closed over the 50sma, which was a possible source of resistance, but wasn't. Stochastics are still mid-range, so no pressure from being overbought. Today had higher volume than the past two days. Given a chance to get back in this Gartley pattern with a good entry, I certainly would.
Summary for this part of the trade:
Enter 705
Exit 723 3/8
Profit $183.75
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