Fears of a global economic slowdown have nervous investors heading for the sidelines. As a result, equity markets have been under pressure since peaking in early May 2011. The two-week reversal that occurred at the height of the 27-month-long rally in the S+P 500 gave savvy investors an indication this bull market was vulnerable to […] Read more
Drozd: Economic slowdown, plunging stock markets could weigh on grain prices
Drozd: Gold shines in light of economic uncertainty
Gold has garnered a lot of attention since nearly doubling in price over the past three years and gaining over 600 per cent this past decade. Gold’s lustre comes from the fact investors have always viewed the shiny metal as a safe investment in times of economic uncertainty. Unknown outcomes for debt ridden countries such […] Read more
Drozd: Main trend in crude oil still up, despite recent downturn
Crude oil prices have been under pressure since a two-week reversal developed 12 weeks ago. This reversal pattern materialized after crude oil prices failed to exceed the upper boundary of the uptrending channel. A two-week reversal indicates a change in direction and can occur at the top or bottom of a market. This two-week reversal […] Read more
Drozd: Reversal pattern alerted producers to cattle price downturn
Cattle prices have been sliding lower, since a two-week reversal developed in early April. This reversal pattern identified a quick halt to the rally after cattle prices climbed to an unprecedented historical high of $122.875. Two-week reversal This chart formation indicates a change in direction and can occur at the top or bottom of a […] Read more
Drozd: Weak U.S. dollar lends underlying support to commodity prices
The U.S. dollar dipped below 74.00 last week, posting a 32-month low. Prices have not been this low since August 2008. The U.S. dollar is the world’s primary reserve currency and it is traded at the IntercontinentalExchange (ICE), the world’s centralized price discovery point for the U.S. dollar index. The U.S. dollar index is a […] Read more
Drozd: Bull market in corn resumes after seasonal downturn
It appears the seasonal tendency for corn prices to move lower in March may be over, due to the bears being unable to push prices below an important line of support on the December 2011 futures contract. This is also the point at which a reversal pattern called a Harami materialized on the candlestick chart. […] Read more
Drozd: Soybean market turns down on long liquidation
Downward corrections in a bull market are inevitable and technical analysis is a proven and reliable means of identifying changes in direction. Technical analysis is the study of market movement and its primary focus is on price action. Its strength and popularity comes from the assumption that future price direction can be predicted by studying […] Read more
Drozd: Soybean oil lends underlying support to canola
The oilseed complex has been well supported by the strong vegetable oil market. This is evidenced by the steep uptrending channel illustrated on the monthly soybean oil chart. This rally began with the development of a “two-month reversal” back in July 2010. This particular “two-month reversal” is seen at the bottom of a downtrend and […] Read more
Drozd: Feeder cattle prices rally to end 2010 on new historical high
What a difference a year makes! In December 2009 feeder cattle prices were down challenging an area of support at $90. Prices quickly bounced off the line of support, as illustrated in the accompanying chart, and by the end of December a two-month reversal materialized, which indicated prices were about to turn back up. In […] Read more
Drozd: Two-week reversal signifies bottoming action in U.S. dollar index
The U.S. dollar had been under pressure since prices peaked at 89.098 in June 2010. However, that price slide came to an abrupt halt shortly after the U.S. Federal Reserve announced another US$600 billion stimulus package at 1:15 p.m. CT on Nov. 3. Listening to the news, one would have thought this highly anticipated announcement […] Read more
Canadian Cattlemen Presents: Depth of Field
