Tuesday, February 12, 2008

Grains: Is This the Top?




Here are the daily charts for corn (bottom), wheat (middle), and soybeans (top, note the tweezer top pattern). Is this the top? I don't know. But the analyst that I quoted early today said that this had the look and feel of a blow-off top.

The flattening of the Bollinger Bands, showing as purple bands that are flattening in all three of these charts, is a sign of a consolidating market. It appears that's what's happening. From here, prices may either consolidate or turn down, perhaps if spring planting in the United States is abundant.