Interval: Daily Looking at the evolution of Wheat price strictly from the technical point of view we will see that it hit a key level support. After its price touched a high at $9.44 per bushel it had dropped 30% back to $6.74 per bushel in 10 months. In the same zone with the support level there is also a trend line which held the price above for almost 3 years. In this area the price has started a consolidation which could be either a continuation pattern or a reversal … [Read more...]
Central Banks Diversify Euro and American Dollar Reserves
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On the long term, Central banks are considering the change of allocation in their investment portfolio, reducing the share of US dollars and euros. If in 2000 the US dollar was the favorite, by the end of 2012 banks’ preference dropped considerably and US dollar’s share of total reserves declined from 62% to 54%. Moreover, Central banks consider that the best investment would be primarily in gold (as a deep and liquid market with no credit risk and with an optimal allocation of approximately 8% … [Read more...]
WTI Crude Oil Looking Bullish More than Ever
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Interval: Monthly Have you looked on the monthly chart of WTI Crude Oil lately? From our point of view it looks bullish more than ever. We can see that from April 2011 a symmetrical triangle was drawn. The triangle is limited by a support and a resistance zone. The inside lines are drawn on the closing prices while the outside lines were drawn on the shadows. One thing to note is the lower support zone which is thicker because of the longer shadows. The volume has dropped, … [Read more...]
WTI Crude Oil Continues Rallying While Brent Stagnates
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In our last analysis, regarding the evolution of oil (WTI Crude Oil Leading And Brent Is Following), we have showed you that West Texas Intermediate Crude Oil was talking a considerable advance in front of Brent Oil. One of the most interesting arguments was seen on the chart of the premium evolution between the two types. After half of month, we saw that the second scenario that we believed in has been confirmed. The price of WTI has rallied to the upper line of the triangle while the price … [Read more...]
GOLD – Safe Heavens are Being Bought
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Interval: Daily A lot of bad news came from Cyprus today. At 16:00 GMT the deliberation started in the Parliament regarding the bank levy. The local reports suggest that none of the parties will vote in favor of this measure. The Finance Minister seems to have been forced to quit, but the resignation was not yet accepted. For the moment the investors are looking for safe heavens. The dollar, the yen and the gold are being bought along with the 10 and 2 year German bonds and 10 year … [Read more...]
WTI Crude Oil Leading And Brent Is Following
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Interval: Daily Looking back on the two types of oil chart, we will see that their correlation is very good, hitting a top at 0.9895 on the correlation indicator in the past year. For the moment is getting closer to an older low. This means that their moves are usually in the same direction, but usually one of them signals the reversal first. Now the first to turn its direction was the WTI Crude and it seems that Brent is following. Let's make a technical analysis on each price … [Read more...]
Corn Diverged From Wheat, WASDE Report Coming
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Interval: Daily Wheat is traded now at eight month lows, as we can see on the chart under the 7$/bushel support. This is mainly because the World crop forecast got to 690 m tons. In the USA the snow that fell over the wheat fields is helping the grain, the forecast is of 53 m tons and for Europe of 138 m tones. From the technical point of view the price is getting closer to the trend line. Corn is currently traded at 7.12$/bushel, a little higher than wheat. It has consolidated itself … [Read more...]
