Focus: Rice Surges
After three weeks of lower closes in rice, prices surged last week to the upside. January rice climbed 81¢ and showed good strength by closing near the highs for the week. Part of the surge may be due to the cancellation of deliverable receipts which has dried up the supply of rice for the January contracts. The daily chart of January rice shows the downtrend strength is weak (ADX
Rice closed Friday above the intermediate-term trendline and made a new 12-week high. The long-term trendline is a potential target.
Signs of a trend reversal would be a higher pivot low followed by another higher pivot high.
Chart Courtesy of TradeStation.
Dr. Charles B. Schaap transitioned from health care to wealth care in the nineties. He is the author of ADXcellence —Power Trend Strategies and Invest with Success—Big Profits for Small Investors. Dr. Schaap is a commodity futures strategist and recognized authority in technical analysis of the financial markets. His website is www.adxcellence.com .
