shootingstartop

Cotton had a breakout of an upsloping congestion zone which lasted from mid November to mid December, 2014. After a Wide-Range Expansion bar breakout, price showed a Shooting Star. This is a Candlestick pattern with a big tail on top and close near the low and the open with a small body. This can be a warning of a potential top in price.  The top of this bar corresponds with the higheset low of the bar at the previous pivot high in late October. Cotton stalled up at these levels for a few days then fell sharply lower.

Lundy@StaffordTrading.com

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