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Technical analysis of CBOT grains

This is in continuation and update to our previous analysis. You can find the post here


Rice has reacted exactly as had hoped. I guess, it is likely to see some range bound action in next few sessions, basically stemming from the fact the prices are likely to stay below the falling angles which are near 20. The fact that it has retraced 61% will be good for its next rally. The zone of 18 - 17 will act as a good support.

Soybeans have given a break out exactly as we had expected. It has now made an ascending triangle. Prices would ideally retrace to retest the supports at 1400s. The momentum indicators are looking good. May be headed to 16 + levels. The triangle target would however be at 19.




Wheat has also played exactly as we expected, with the bottom forming. The indicators have all taken a turn for good. This is likely to have a good rally once the momentum picks up. The MACD is on the verge of moving into positive territory.

All have played out good, over past two weeks. It is likely that we can see some good movements in these commodities over a period of time. Though I am tempted to count it as the 2nd corrective wave, its too much at stake to claim that now. Its good to play the trend here.
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