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I sold beans for this year the day after the highest peak on the chart. Beans have since fallen $2 a bushel. I saw this chart formation coming and sold off of the chart signal. I am glad I did not second guess myself. I wish I did not have to worry about this part. Bad enough to worry on production side of things.CF
This is a classic Head and shoulders chart pattern. The action on the right side is reflected on the left side like a distorted mirror. You don't know exactly what the other side is going to look like but will have similar movements.CF
This chart tells a lot of how the market went. The double bottom on the left side showed that there was an emerging Bull(UP)market and there was. A Nice one at that. Then You see how the market went up slowly but fell fast. There is an old saying that the bull has to be fed but the Bear(Down) market hibernates and wakes with a vengeance. The Up and down on the right hand side is a consolidating range beans have been in as traders await USDA reports and weather forecasts for the month of August which is when the bean crop is made. It will break out of this trend once more is known and will ascend or fall at a measured length of the sideways range it is in now. The longer the sideways move, usually the more explosive up or down the break out is. There is a big USDA report coming out on Tuesday. Will probably break this range then.CF
I don't really understand, but wanted to say congrats on the extra $2 a bushel.
Thanks. Don't worry about not understanding. I had to take a $2500 marketing course from a broker to understand it myself.CFQuote:
Originally Posted by dpisani
Your are correct. A classic looking head and shoulders looking at the chart now. But I'm surprised that you were able to surmise the formation of the head on the day after the highest peak. Congrats! You are also correct...a nice looking double bottom on the left.