Bullish Reversals

The CORN ETF is of interest as agricultural commodities have fallen a lot lately.

As far as we can tell, food supply and shortages remain a concern going into the spring and summer growing seasons.

The Complete Trader Scan checks off 2 boxes. Brick and Glass Bottoms.

The Brickwall pattern is a 2-day pattern where the stock puts in a new 60-day low on a wide-range move and then reverses and closes the next day in the upper portion of its trading range.

The price phase is bearish.

Momentum as illustrated by Real Motion, indicates a bearish trend. Although as you can see from the chart of CORN, it has the potential for a mean reversion.

The monthly chart is also interesting.

Note how the price holds the 23-month moving average or the 2-year business cycle-still intact. That is positive. And a good risk point.

Going back to the daily chart, we would want to see the price clear over Tuesday’s high or the reversal day high.

It is a bit of a trip back to the overhead 50 and 200-DMAs-but REMEMBER:

We never know the future-yet we can ascertain the past by seeing where to place a good stop loss to control risk.

Last note-the topic of March 1st Daily-Steel Dynamics (STLD) and comment, “may be on the verge of another breakout after a month of price consolidation.”

The stock closed up nearly 3% today.

ETF Summary

S&P 500 (SPY) 390 support with 405 closest resistance

Russell 2000 (IWM) MA support around 184. 190 has to clear

Dow (DIA326 support 335 resistance

Nasdaq (QQQ) 284 big support 300 resistance

Regional banks (KRE) Back to weak link under 60-could be a warning

Semiconductors (SMH) 228 support 240 pivotal 248 key resistance

Transportation (IYT) 240 resistance as best Mod Fam performer and 230 support

Biotechnology (IBB) 125-130 new range

Retail (XRT) Comeback a little but has to clear 66.40 or warning like KRE

More By This Author:

Industrial Metals Outperforming The S&P 500
Nasdaq New High/New Low Ratio And Risk
Century Aluminum Pops Up As Bullish

Disclaimer: The information provided by us is for educational and informational purposes. This information is based on our trading experience and beliefs. The information on this website is not ...

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