Waiting, For The Next Chess Move

In chess, most (if not all) opens and responses have a name:

‘Danish Gambit’

‘Cochrane Gambit’

‘Petrov Defense’

‘Scotch Game’

‘King’s Gambit’

It’s been nearly one year, since discussing a potential corn trading strategy; during that time, the strategy remains in effect (not advice, not a recommendation).

We’re still waiting for a chess move from the ‘other side’.

Keeping in concert with traditional opening moves as named above, we’re going to name our set-up as follows:

‘Potato Head Gambit’

That is, an ‘administrative’ move which temporally puts the corn futures market into chaos. A move similar to Carter’s grain embargo of the 1980s.

The weekly chart of tracking fund CORN, shows us something’s about to happen.

Either we get a breakout … or breakdown.

Teucrium Corn Fund, CORN, Weekly

The ‘Derecho‘ is marked as it was the kickoff to the current structure.

A wedge has formed.

A breakdown puts CORN, at a measured move in the vicinity of 18.0; a breakout to the upside, measures approximately to 38.0.

From a trading perspective, a breakdown is preferred.

Price action pushing lower to the 18-area, puts CORN below well established (support) lows of 2021.

A penetration of those lows would (potentially) put CORN in Wyckoff Spring Position.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279