ROUGH RICE
Head and Shoulder is a common technical analysis chart pattern that helps us identify major reversals. An inverted H&S would signal a base formation and should be regarded as a bullish development on the price chart. While H&S top is a bearish chart pattern that signals further weakness in price. Rough Rice which lagged most of the agricultural commodities’ performance during 2009-2010 period might be forming an inverted H&S pattern. 16 level was critical resistance and Rough Rice broke above this in the last one month. If July-August period is a pullback to the broken resistance at 16 level, Rough Rice should resume its uptrend in the following weeks. First short-term target is at 20.50 and the calculated possible H&S formation price target is at 27.50. Failure to hold above 16 level will change the positive technical outlook to neutral/negative.
