CNS Canada –– The ICE Futures Canada November canola contract has rallied by more than $30 in a matter of days, jumping past a number of key chart points in the process. The futures are nearing major resistance from a technical standpoint.
The November contract, which has held in a $40 range from $472 to $512 over the past year, shot from the bottom of that range to near the top in the five trading days from June 27 to July 4.
Settling Tuesday at $504.80 per tonne, the contract faces nearby resistance at the psychological $510 mark, then again at $515, which was briefly hit back in December.
On the other side, Tuesday’s advances left a gap on the charts between $499.50 and $500.30, which represents a nearby downside target to fill.
The relative strength index (RSI) is nearing overbought territory, while the moving average convergence divergence (MACD) is also starting to signal an overbought market.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.