Focus: Grains Continue Climb
Last week grains continued their climb and made new five and six-week highs. January soybeans rose 83.5¢ to close at $8.68-2, March corn climbed 51.5¢ to close at $3.60-6, and March wheat gained 36¢ to close at $5.63-2. The daily chart of January soybeans shows that price crossed above the down trendline and made higher highs, presumptive evidence of a trend reversal. The ADX line (blue arrow) rose above a trendline on the –ADX peaks, suggesting new trend strength. The +DMI line (green arrow) also made a new high (and higher than the previous –DMI high) which supports new upside strength. There is technical resistance at 984 and 1009, where prices may pullback.
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.
