For three weeks now, the iPath DJ-UBS Grains TR Sub-Idx ETN (JJG) has been "coiling" atop its most recent upleg off of the May 12 pivot low at 49.77 to the May 19 high at 55.71. My work considers the coil a bull-flag type of pattern that should resolve itself to the upside and which will trigger upside continuation of the larger bullish coil pattern that has formed since the Feb 9 high at 58.25.

As long as near-term support between 53.90 and 53.00 contains any additional weakness, we will continue to be bullish JJG.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.