Focus: Cold Commodities
The weak global economy continues cool down activity in grain prices. Last week, the grains showed no directional conviction and traded in narrow ranges. Wheat had a 33.25¢ range and closed up only 5.75¢ ($5.16-2). Soybeans ended the week up 4.5¢ ($8.79) and had a 45.5¢ range. Corn’s range was 19.75¢ and ended the week up 2¢ ($3.52-6). Narrow ranges eventually leads to range expansion and possibly a new trend. For now, the grains are in watch and wait mode. A daily chart comparing wheat, soybeans and corn shows their similar price patterns. Trendlines highlight key support and resistance zones.
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.
