Corn is engaging the broad support zone at the bottom of the range. Watch for reversals and enter long positions on strong upward closes, which would put in classic Wyckoff springs. Close stops and active position management are essential—if the trade works it should move immediately and smartly higher, as price rejection sets in. If not, it may be best to reduce or exit positions as a further selloff could be in the cards. This is the nature of tactical inflections: there is often good potential in both directions, so nimble trading is required.
- Post author:AdamHGrimes
- Post published:09/12/2012
- Post category:General Comments / Support / Resistance
Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.