Technical Analysis November 7,2011

The technical indicators are difficult to read at the moment as the market is trading with relatively high volumes but relatively small bid price spread; as well as a lack of consistent direction over a prolonged period of time (Tight Market).

Corn

Last week, although the price of corn was fluctuated, the settle price in last Thursday, Friday and today did not change a lot. The fast moving average falls very closed to the slow moving average at this moment. It means the fast moving average may cross the slow moving average from above in the very near future. Also, the MACD indicates the similar moving trend to the SMA since the slow moving average and fast moving average are converging now. These imply that the market of corn might become bearish in the near future. The RSI indicates that the market is neither overbought nor oversold at this moment.

Reference: http://futures.tradingcharts.com/chart/CN/

Soybeans

Last week, although soybean price fluctuated a lot, the trend was upward. Today, Monday (Nov. 07th), soybean has a significant drop of 20.2, and it settled at 1192.2 when the market closed. The market either overbought or oversold. The 4-day fast moving average is now under two slow moving averages, and the 9-day MA is also under the 18-day MA, which means the market is quite bearish. MACD is in bullish territory, but it didn’t generate a clear signal (fast EMA didn’t cross above or under slow EMA). The short term trend would be DOWN.

Reference: http://futures.tradingcharts.com/chart/ZS/

Wheat

Wheat opened today with a price of 636.00 the price has remained relatively idle in past weeks. This being said wheat is in bullish territory as fast moving average is above the slow moving average, but since both slow average and fast moving average are moving up this is pointing to higher prices. RSI is sitting neutral at 49.65. MACD is also predicting bullish movements but a signal has yet to be signaled. (no crossing of fastMA and slowMA). It looks like there is a convergence of 4-day, 9-day and 18-day MA buying signals could be instigated here.

References: http://futures.tradingcharts.com/chart/CW