Sunday, November 23, 2014

JJG Grains ETN Daily Chart Potential C&H

JJG set up with positive divergence (green lines) on the daily and weekly chart as Keystone called out previously and the move off the bottom occurs (green arrow). Keystone took profits exiting the JJG long trade and does not plan reentering. JJG may spend time churning sideways moving forward. Price is attacking that strong resistance level at 38-ish which is the base line for a C&H (cup and handle). If price breaks out above 38, the target is 44, but do not hold your breath. Commodities, grains and oil will likely all remain challenged in an environment of lower global demand and increasing world deflation.

The red lines show negative divergence across all indicators so a spank down would be expected and occurs (red arrow). The indicators are drifting weak and bleak so price may simply stumble sideways with a downward bias. Keystone will keep an eye on JJG and if price retreats a buy at the gap fill at 33 appears an attractive entry point. If JJG breaks out above 38-39, upside is the path ahead and stock market bulls will be happy since the threats of global deflation will ease and food prices at the supermarket would begin climbing again. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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