Key Grains Now Bouncing Off Rising Support Levels
Chris Kimble | Mar 03, 2014 07:34AM ET
Commodities have had a rough few years and key grains, (Wheat, Corn and Soybeans) went along for the ride, to the downside. I believe in the 'ole idea of 'buy low and sell higher' and this complex has been of interest to me since the start of the year, especially since it had such a rough 36 months.
We picked up the iPath DJ-UBS Grains Subindex Total Return ETN, (JJG), also knowns as the Grain ETF, a few weeks ago as it was breaking above the falling resistance line highlighted above.
This chart reflects that the key grains are bouncing off key Fibonacci and rising support lines. Are these grains moving higher because of something that is happening in Russia? I will leave that up to others to discuss.
Bottom line is this, the hard hit grains are edging higher of late and JJG closed this past week above its 200MA for the first time in a couple of years.
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