Positive divergences - can it make a local bottom?
Here are the daily and 4H charts of Corn which I meantioned yesterday on Twitter but I could not post.
Daily:
- Ichimoku setup is bearish, but Price is too far below equilibrium. It needs to consolidate, pull back a bit at some point.
- Heikin-Ashi candles shrink, last candle is a doji. haDetlta is still below zero: consolidation, indecision
- minor positive divergence in EWO
4H:
- Ichimoku is losing some of its bearish bias. Price is testing Kijun and bearish trendline.
- haDelta/SMA3 shows positive divergence
- EWO shows positive divergence
- Short term upper key levels: 338-340 and 345
In case Price can't make a lower low today or tomorrow, then we may see some quicker pull back to 350-360 zone.
Be wise how much risk you allocate to this trade! You have to keep a tight stop below 330, and you should not trade more than 0,5-1 trade unit size. Risk management is always the key, especially in case of counter trend swing trades!
Daily:
- Ichimoku setup is bearish, but Price is too far below equilibrium. It needs to consolidate, pull back a bit at some point.
- Heikin-Ashi candles shrink, last candle is a doji. haDetlta is still below zero: consolidation, indecision
- minor positive divergence in EWO
4H:
- Ichimoku is losing some of its bearish bias. Price is testing Kijun and bearish trendline.
- haDelta/SMA3 shows positive divergence
- EWO shows positive divergence
- Short term upper key levels: 338-340 and 345
In case Price can't make a lower low today or tomorrow, then we may see some quicker pull back to 350-360 zone.
Be wise how much risk you allocate to this trade! You have to keep a tight stop below 330, and you should not trade more than 0,5-1 trade unit size. Risk management is always the key, especially in case of counter trend swing trades!