Possible Trade Setups

There are two potential trading opportunities for Tuesday. The first one is an ascending triangle pattern in July Corn. Look to get long @ 435.00 with an intitial stop @ 422.50. The profit objective of this pattern is ~463.25. The reward is 1425.00 and risk is 612.50 on a one lot. Current price is above the 10, 20, 50, 100 day EMA's; RSI is bullish; MACD is bullish; and short-term trend is up. Possible resistance is ~ 449.25 (2009 contract high).

The second potential pattern is a symmetrical triangle in July Cotton. This pattern can break out to either the upside or downside. Since the 2 month trend is bullish, we will look to trade the upside breakout if it occurs. Look to enter long ~ 57.50 with an inital stop @ 56.40. The profit objective of this pattern is ~ 59.75. The reward is 1130.00 and risk is 550.00 on a one lot. Current price is > 20, 50, 100 day EMA's; RSI is bullish; MACD is positive; short-term trend is up. Obstacles include MACD signal line is bearish; 5 day resistance @ 10 day EMA; weekly resistance ~ 38% retracement area; long-term trend is bearish.