Technical Update - Soft Commodities set for higher price levels
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Wheat is breaking bullish out of its short term corrective falling channel. Minor resistance at $1,167 and 1,213.No divergence on RSI indicates bullish trend to resume. If RSI closes above 60 which is likely Bull trend is confirmed.
Corn trading above its short term falling trend line breaking bullish out of Descending like triangle pattern. RSI above 60 confirms Bullish trend has resumed and March peak at around 782.75 likely to be tested and broken.
Soybeans jumped back above medium trend line after finding strong support at $1,579If breaking above short term falling trend line new highs are likely. RSI breaking above falling trend line could be first indication of that scenario to play out.
Coffee confirming uptrend. Back above 100 and 55 SMA’s. RSI above 60 confirm Bullish trend. Some resistance at $241. If a Daily close below 224 Coffee will go back to neutral.
Cotton likely to test March peak at around $141.80. RSI above 60 threshold i.e. short term falling trend line very likely to be broken.
If taking out March peak no strong resistance before around 160-168 level. A Daily close below 131 will reverse the uptrend
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