David Drozd

Reading Time: 3 minutes The Japanese are regarded as the true pioneers of market technical analysis. They began trading forward rice contracts (futures) in 1654 and over the next three centuries have developed many sophisticated ways to analyze the markets. One Japanese method of charting is called candlestick because the individual lines resemble candles. While candlestick charts use the […] Read more

Reading Time: 3 minutes Resistance is a term used to describe a price level where the selling of futures contracts is expected to halt the current upward move in price of the market. On the daily charts, these areas will appear as well-defined price ranges within which the market previously traded essentially sideways (A), prior to making a decisive […] Read more

Reading Time: 3 minutes Since establishing a yearly low of $4.55 per bushel on Dec. 5, 2008, wheat prices have rallied to $6.16 per bushel, racking up an impressive increase, at the time of writing, of 35 per cent in just 15 business days. Two chart formations materialized: a bear trap and a breakaway gap, early indicators of a […] Read more

Reading Time: 3 minutes Recent volatile price action is similar to that seen in the early 1970s, when markets realigned into a new higher trading range. Examining these patterns more than three decades old can reveal clues about future price direction, as history often repeats itself because human nature never changes. If history should repeat, similar to trading patterns […] Read more

Reading Time: 3 minutes 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

Reading Time: 3 minutes 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

Reading Time: 3 minutes 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