By IFCMarkets
Bullish reversal
Let’s examine the CORN:H4 instrument: continuous corn futures on the H4 chart. The price came close to the daily trend line, which multiplies the chances of the trend reversal. Currently the local trend line and the daily support line shape a triangle: the consolidation stage forecasts a new volatility momentum. However, there are no obvious signs of the retracement completion now. We expect there might be a reversal starting from the level at $390.4. When crossing this level, ParabolicSAR trend indicator will reverse in the direction of the green zone, as well as there will be a breakout of the upper Donchian Channel boundary, so we’ll receive all the confirmation signals for placing a position.
Conservative traders are recommended to wait for the resistance breakout on the RSI-Bars chart to get the confirmation from the bullish market. The corresponding momentum is possible when reaching the level at 390.4. This mark can be used for opening a pending buy order. Stop loss is to be placed below 381.7. This level is crossing the trend line and is also confirmed by the Bill Williams fractal.
| Position | Buy |
| Buy stop | above 390.4 |
| Stop loss | below 381.7 |
Market Analysis provided by IFCMarkets