Technical observations of RossClark@shaw.ca
The 20-day moving average has been violated for the first time since the rally started last summer.
Open interest continued to expand into the highs, signifying that it was not short-covering that drove prices over $24, but continued buying interest.
The island top is an important technical pattern, now trapping all buyers above $23 with losses.
- In January our call was for commodities to rally to an important high in March-April.
- Wheat did a similar blowout and collapsed by 45%.
- Rice is in the early stages of an important failure.
- Quite likely this cyclical bull market in grains has been completed.
