Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
JOHNSON & JOHNSON (JNJ) Big Pharama AI Mega-trend Investing 2020 - 25th Jan 20
Experts See Opportunity in Ratios of Gold to Silver and Platinum - 25th Jan 20
Gold/Silver Ratio, SPX, Yield Curve and a Story to Tell - 25th Jan 20
Germany Starts War on Gold  - 25th Jan 20
Gold Mining Stocks Valuations - 25th Jan 20
Three Upside and One Downside Risk for Gold - 25th Jan 20
A Lesson About Gold – How Bullish Can It Be? - 24th Jan 20
Stock Market January 2018 Repeats in 2020 – Yikes! - 24th Jan 20
Gold Report from the Two Besieged Cities - 24th Jan 20
Stock Market Elliott Waves Trend Forecast 2020 - Video - 24th Jan 20
AMD Multi-cores vs INTEL Turbo Cores - Best Gaming CPUs 2020 - 3900x, 3950x, 9900K, or 9900KS - 24th Jan 20
Choosing the Best Garage Floor Containment Mats - 23rd Jan 20
Understanding the Benefits of Cannabis Tea - 23rd Jan 20
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Agricultural Commodities Prices Prepare To Launch Higher Again

Commodities / Agricultural Commodities Aug 09, 2015 - 08:59 AM GMT

By: Austin_Galt

Commodities

As outlined in previous analysis, the price of the agricultural commodities of corn, soybeans and wheat look to have already kicked off the bear rallies. From previous longer term analysis, we are expecting these bear rallies to be big ones.

Prices have come back down and now look ready to launch into the next stage of these rallies so let's revise the technicals of each commodity using the daily charts.


Corn Daily Chart

Corn Daily Chart

The first correction in a new bull trend often makes a deep retracement and so far price has already pulled back to around the 76.4% Fibonacci retracement level of the first move higher.

I have drawn a Fibonacci Fan which shows the recent low just above the 88.6% angle which often sees in the first pullback low.

The PSAR indicator still has a bearish bias with the dots above price.

The Bollinger Bands show price has left the lower band but has yet to get back to the middle band so one final move back to the lower band remains a possibility.

The recent low was accompanied by bullish divergences on the RSI while both the Stochatsic and MACD indicators have now turned bullish.

Soybeans Daily Chart

Soybeans Daily Chart

Price has corrected to just above the 76.4% Fibonacci retracement level and while the 76.4% Fibonacci Fan angle looks to have provided support. While price turning back up now looks bullish, a move back to the 76.4% retracement level and 88.6% fan angle can't be ruled out.

The PSAR indicator now has a bullish bias with the dots below price although it would not surprise to see price come back down to test the support from these dots which are near the recent lows.

The Bollinger Bands show price now just above the middle band and I would expect some oscillation around this middle band at the least before the next leg higher really gets going.

The RSI did not show any bullish divergence at the recent low which I generally like to see although it is certainly not necessary. The Stochastic and MACD indicators are both now bullish again.

Wheat Daily Chart

Wheat Daily Chart

Price has corrected to around the 76.4% Fibonacci retracement level and the 88.6% Fibonacci Fan angle and if the low is not yet in place then I would expect any further moves lower to be only very marginal.

The PSAR indicator now has a bullish bias with the dots below price.

The Bollinger bands show price is back to the middle band but it is not uncommon in these instances to see one last hurrah move back to the lower band before the rally really lets loose.

The recent low showed bullish divergences on the RSI while the Stochastic and MACD indicators have both turned bullish.

Summing up, the prices of corn, soybeans and wheat have all now made deep retracements which are commonly found at the beginning of new bull trend. We should see a test of these recent lows which may or may not make marginal false break lows before the expected bear rallies kick on to much higher prices.

By Austin Galt

www.thevoodooanalyst.com 

Austin Galt is The Voodoo Analyst. I have studied charts for over 20 years and am currently a private trader. Several years ago I worked as a licensed advisor with a well known Australian stock broker. While there was an abundance of fundamental analysts, there seemed to be a dearth of technical analysts. My aim here is to provide my view of technical analysis that is both intriguing and misunderstood by many. I like to refer to it as the black magic of stock market analysis.

Email - info@thevoodooanalyst.com 

My website is www.thevoodooanalyst.com 

© 2015 Copyright  The Voodoo Analyst - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Austin Galt Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules