Canola futures

[Zaphod]

Interesting chart in the nearby and Nov canola futures. Earlier, the 20-day average was acting as support, then turned into resistance. Then the 50-day turned from support into resistance. Now, the futures are trading between the 50 and 100-day averages.

[boarderbloke]

do you think we'll find support now that we've filled in the gap on the July Bean & July BeanOil charts? will we make another small run up before planting so that the previous high will form the 'head' of a 'head & shoulders' chart pattern ?? the weather in the southern midwest and southeast has really been rough(wet with flooding) the last two days, yet no effect in the grain commodities?? as well the dry conditions continue in the west winter wheat growing areas!!

[Zaphod]

The head & shoulder is stronger on the beans than the bean oil chart. I'm thinking that if July beans can hold above the 100-day, it has a good chance of forming the other shoulder. That gap around the 20-day average is going to be hard to fill though. If beans drop through the 100-day, it will probably trigger another round of fund selling. Even if a head and shoulders forms, it'll have an awfully long neck that points below $10 per bushel. Funny how $10 beans seem cheap now.

I'm pretty nervous about calling this market though when I see gold dropping $60 in one day. I figured that would be the one strength in the market, but I keep forgetting it's somewhere up in the stratosphere.