Short term downtrend is over
Recently orange juice futures, that are traded on the Intercontinental Exchange (ICE), fell from $222 and made the bottom at $186 price level. This trend took 28 calendar or 19 trading days. There is a psychological rule of 21 day cycle, which reverses price trends very often. Now we can see that such cycle is over and the price has started to bounce to the upside. What to expect next?
The bounce targets
There are 2 possible targets at the bullish side for now. Look at the chart.
As you can see, the nearest resistance level is at $210, and if it breaks this level, expect the uptrend continuation back to $220. The resistance is stronger there, so long position closing is highly recommended there, and if you are a short-term trader, there will be a good place to open a short position at the $220 level.
Angle support
Please note the orange line with green arrows below it. This is the main support angle which is active now. If the price decide to go down again, earlier than expected, then the breaking of this support line will indicate us that the short-term bull is cancelled, and orange juice futures price is about to go down more to new lows.
Recently orange juice futures, that are traded on the Intercontinental Exchange (ICE), fell from $222 and made the bottom at $186 price level. This trend took 28 calendar or 19 trading days. There is a psychological rule of 21 day cycle, which reverses price trends very often. Now we can see that such cycle is over and the price has started to bounce to the upside. What to expect next?
The bounce targets
There are 2 possible targets at the bullish side for now. Look at the chart.
As you can see, the nearest resistance level is at $210, and if it breaks this level, expect the uptrend continuation back to $220. The resistance is stronger there, so long position closing is highly recommended there, and if you are a short-term trader, there will be a good place to open a short position at the $220 level.
Angle support
Please note the orange line with green arrows below it. This is the main support angle which is active now. If the price decide to go down again, earlier than expected, then the breaking of this support line will indicate us that the short-term bull is cancelled, and orange juice futures price is about to go down more to new lows.
Комментарий:
This asset broke the green arrow support earlier than expected, and that breakdown indicated that the downtrend had one more wave to occur. Please note how orange juice found support on another angle, which was also well-known and drawn a few months ago.