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ChartWorks
By Bob Hoye & Ross Clark May 2, 2008
Technical
observations of RossClark@shaw.ca
The 20-day moving average has been violated for the first time since the rally started last summer. Open interest continued to expand into the highs, signifying that it was not short-covering that drove prices over $24, but continued buying interest. The island top is an important technical pattern, now trapping all buyers above $23 with losses. · In January our call was for commodities to rally to an important high in March-April. · Wheat did a similar blowout and collapsed by 45%. · Rice is in the early stages of an important failure. Quite likely this cyclical bull market in grains has been completed.
bobhoye@institutionaladvisors.com
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