CNS Canada –– ICE canola futures are looking bearish from a chart standpoint, with the November contract settling at its lowest point in more than two months on Monday at $485.70 per tonne.
After declining about $25 per tonne over the past three weeks, the general trend still remains pointed lower, with the yearly lows of just under $475 per tonne a possible harvesttime downside target.
The next major support on a weekly chart also comes in at about $475 per tonne.
On the other side, the 20-, 100-, and 200-day moving averages all converge around $498-$499 per tonne for the November contract, which should mark a possible upside target if a corrective bounce materializes.
The relative strength index, at 34.38, is still slightly above oversold territory.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
