The news is always the most bullish at the top. In the last month or two we have all heard the news about higher fertilizer prices. Let’s take a look at this market from both a technical and fundamental perspective now that world fertilizer prices are easing. You may not be aware, but it is […] Read more
Drozd: Fertilizer prices breach line of support
Drozd: “V-tops” cap rallies
V-tops are one of the most difficult chart patterns to analyze because of the suddenness in which they form. A V-top indicates a trend reversal, with dynamic and substantial price drops often occurring with the formation of this pattern. V-tops have three essential components: Prices must be in an uptrend, with a near vertical move. […] Read more
Drozd: U.S. dollar blamed for market meltdown
There has been a lot of talk lately about the pressure the strengthening U.S. dollar is putting on commodity prices. To the extent that a higher U.S. dollar diminishes foreign buyers’ purchasing power, making U.S. goods more expensive, this is true. However, the rising dollar is not the only factor contributing to lower commodity prices. […] Read more
Drozd: Livestock sector dodges bullet
The livestock sector breathed a sigh of relief when a “double top” formation appeared on the December 2008 Soybean Meal chart and accurately predicted the ensuing price decline. Just as the news is always the most bullish at the “top,” it was no coincidence that soybean meal prices peaked on July 11, 2008, the same […] Read more
Drozd: $147 crude no surprise, but now what?
A “bull flag” formation appeared on the monthly crude oil chart in early March 2008, which accurately predicted the ensuing price advance to $147 per barrel. Flags are consolidation patterns within the existing price trend. In an uptrend, the formation truly resembles a flag. It stands atop a “flagpole” and slants downward in the shape […] Read more
Drozd: Corn fundamentals catching up to charts
The fundamentals are playing catch-up to substantiate what the charts were predicting months ago. It was Jan. 2, 2008 and corn prices began the New Year trading above the previous month’s high. This higher opening created a “Gap” in price between the December high of $4.57 and January’s low of $4.59. A gap is an […] Read more
Cyber-Savvy Farmer
