Technical analysis is the study of market movement. Its strength and popularity comes from the assumption that future price direction can be predicted by studying a market’s past activity. Technical analysis is concerned exclusively with the market and certain statistics the market generates; prices, volume and open interest. In technical analysis no consideration is given […] Read more
Drozd: Classic topping action in soybean meal
Classic topping action in soybean meal
Reading Time: 3 minutes Technical analysis is the study of market movement. Its strength and popularity comes from the assumption that future price direction can be predicted by studying a market’s past activity. Technical analysis is concerned exclusively with the market and certain statistics the market generates — prices, volume and open interest. In technical analysis, no consideration is […] Read more
Hog market gets slaughtered, as prices fall to a 20-month low
Chart patterns Technical analyst says there were signals of a sharp drop at the end of July
Reading Time: 3 minutes Last month I talked about the record-high price of corn and soybeans. As much as this is exciting news to grain producers, especially those fortunate to have a crop, this has been devastating for hog producers. Near-record-high feed costs and a slowing economy are forcing hog producers in China to sell their herds. Liquidation is […] Read moreBreakaway gap alerts of counter-seasonal soybean rally
Reading Time: 3 minutes On December 19, 2011, a breakaway gap materialized, alerting soybean producers and traders alike to a sudden change in the price direction of the soybean market. In fact, this gap not only confirmed an end to the downward price spiral, but it marked the beginning of a counter-seasonal rally, with soybean prices rallying $1.65 per […] Read more
Drozd: Hog market slaughtered, as prices fall to 20-month low
Last month I talked about the record-high price of corn and soybeans. As much as this is exciting news to grain producers, especially those fortunate to have a crop, this has been devastating for hog producers. Near-record-high feed costs and a slowing economy are forcing hog producers in China to sell their herds. Liquidation is […] Read more
Drozd: Spring wheat posts highest price of open market era
Red spring wheat, grading No. 1, 13.5 per cent protein, reached $8 per bushel for the 2012-13 crop year. This is the highest price farmers have been able to lock in, since the open market era was announced in mid-December 2011. True to form, wheat prices began their seasonal turn higher, just as the U.S. […] Read more
Drozd: Classic ‘head + shoulders top’ confirmed downturn in oat prices
To those less familiar with charting and technical analysis, the recent drop in oat prices may have come as a bit of a surprise. What I have found in my 30 years’ experience is that even though the oat futures market has a relatively small amount of open interest compared to actively traded commodities such […] Read more
Drozd: Reversal patterns signal a downturn in cattle prices
Markets can and often do change direction on a moment’s notice. Cattle prices were at a record high in early March 2012, but quickly turned down and dropped below the uptrending channel, thus ending the rally. An uptrending channel develops during a period of rising prices and support is determined by a line drawn across […] Read more
Drozd: Harami alerts hog farmers to downward correction
After rallying up, but failing to fill a gap between $91.475 and $91.650, lean hog prices on the weekly nearby candlestick chart turned back down on Feb. 24. The ensuing reversal pattern (sell signal) that developed is referred to as a harami on a candlestick chart. Lean hog prices have since lost more than six […] Read more
Drozd: Breakaway gap alerts soybean growers to counter-seasonal rally
On Dec. 19, 2011, a breakaway gap materialized, alerting soybean producers and traders alike to a sudden change in the price direction of the soybean market. In fact, this gap not only confirmed an end to the downward price spiral, but it marked the beginning of a counter-seasonal rally, with soybean prices rallying $1.65 per […] Read more
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