As a follow-up to the 2017 Agricultural Commodities Outlook published on January 2nd as well as an inquiry from @nj1957 in the trading room on JJG, here’s my outlook along with the recent developments & outlook for JJG (Grains ETN). JJG broke out above the mid-2016 to early 2017 basing pattern yesterday & remains above so far today. If JJG can take out the 30 level with conviction, that would open the door for a move up to the 31.35-32.00 resistance / target zone. Such a scenario might occur following a back-test of the 29.50 resistance / top of base.
JJG daily Jan 18th
Zooming out to a 4-year chart (2-day period candlesticks), we can see the sharp rally in 2016 that followed the breakout & back-test of this large bullish falling wedge pattern, with JJG then going on to fall sharply back below the downtrend line, going on to base below the 29.50 level since last July & finally breaking out yesterday. Bottom line is that agricultural commodities, including grains, still look to be one of the more promising trading/investing opportunities as we head into the new year.
JJG 4-year Jan 18th