Best Financial Markets Analysis Article In respect of the current climate conference we take a look at Rough Rice futures (CBOT), with prices influenced by inclement weather – the possible result of climate change. This was recently discussed on CNBC by Mark Sturdy, and those interested may follow this at http://www.cnbc.com/id/15840232?video=1349059964&play=1

The Commodity Specialist view

WEEKLY CHART – CONTINUATION:

2009 has been dominated by a recovery in prices.

The latest upleg, which broke free of consolidation below 14.00 (now a support area) has reached a zone of key resistance.

This includes the old 15.830 Aug-08 low and 16.350 38.2% retracement – a struggle to get through here would not surprise, with a s/term pullback becoming more likely.

A later return to strength is expected.

DAILY CHART – MAR-10:

The structure of the last upleg from 13.500 Sep low looks mature, increasing pullback risk – this is emphasised by the current negative RSI divergence.

First area of support comes from the dual Fibo retracements, but the stronger area is slightly lower, prior 14.690/14.625/ 14.500 consolidation highs combining with the 61.8% and 38.2% pullback levels to offer potentially strong support.

Buyers on dips would favour this area.

Note that this key support area falls around 14.00 on the continuation chart.

Mark Sturdy
John Lewis

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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