Trade of the week: short corn
Corn looks to have ended its corrective move higher at last week’s 464 high, which is why we would like to go short the commodity, with a downside target around 410 and a stop loss at 465.
(AI Video Summary)
Why stop losses are so important
In this week's "Trading the trend", Axel Rudolph delves into the importance of setting stop loss levels through the analysis of past trades, such as Robusta coffee and the NASDAQ 100.
An unsuccessful Robusta Coffee short trade highlighted the critical role of stop losses in minimising potential trading capital losses. Rudolph advises placing a stop loss above the all-time high to prevent excessive losses.
This week's trading opportunities
Rudolph also previews going short on corn based on the 200-day moving average and Elliott Wave patterns, with a tight stop loss set above last Friday's 464 high, with a downside target around 410 and a stop loss at 465. These are effective strategies to manage and mitigate risk in volatile markets.
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