Oats Gartley pattern
Updated
May Oats is building a bullish Gartley pattern. On Friday it rose out of a wedge pattern and stayed up. Next upside for the bulls is at 254'2 which is major resistance. This would also be fulfilling a H&S that is still intact. But H&S only show results 30% of the time in my experience, so a double top isn't out of the question.
Open Interest Rule 6—If prices are in a congestion range (tick) and open interest is falling (tick), this is a bullish sign.
The reason: professionals who are more likely to be short, are covering. The weak hands are throwing in the towel.
I am neutral as we still may see some up and down, uptrend was broken, H&S still intact and 20 day moving average is turning bearish.
Open Interest Rule 6—If prices are in a congestion range (tick) and open interest is falling (tick), this is a bullish sign.
The reason: professionals who are more likely to be short, are covering. The weak hands are throwing in the towel.
I am neutral as we still may see some up and down, uptrend was broken, H&S still intact and 20 day moving average is turning bearish.
Comment
Oats looking tipsy. Might produce a flag or start moving downward tomorrow. Using previous uptrend line as resistance.Comment
Oats met Gartley condition today, but unfortunately we will probably see a double top around 260 tonight or tomorrow. Oats is extremely bullish right now so further upside maybe in the future for this market, signifying a possible butterfly. That would take us up to the 268 area.If fail and Gartley intact, we would move into the last leg.
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