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SILVER and SOYBEANS

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Poor man’s gold might be setting up for a strong performance in the metal complex. SILVER/GOLD ratio is reversing from a historical support area. This level acted as a medium/long-term turning point for the ratio in 1997, 2003 and in 2008. Not only the relative performance of Silver is showing strength but also the price chart of Silver forming a possible base formation. Silver has been outperforming another precious metal that has industrial use; platinum. SILVER/PLATINUM ratio is on the rise with the latest chart development suggestion even more to come. In the metals, silver can be a winner.

SILVER VS GOLD WEEKLY SCALE RATIO

SILVER VS GOLD WEEKLY SCALE RATIO

SILVER VS PLATINUM WEEKLY SCALE RATIO

SILVER VS PLATINUM WEEKLY SCALE RATIO

Over the past year, Silver possibly formed a head and shoulder base with a neckline at 16.35 levels. Breakout above 16.35 will clear multi-year downward trend lines and also the year-long horizontal resistance. Weekly price closed at 16.21 levels.

SILVER

Another long-term opportunity might be developing on Soybeans price chart. Over the past few weeks, Soybeans reversed from an important inflection point. Two long-term trend lines overlapped around 850 levels. Last week’s strong weekly price bar suggests possible strength for the following weeks. Resistance area on the first month continuation chart is around 1070.

WEEKLY SCALE PRICE CHART

WEEKLY SCALE PRICE CHART

WHEAT, SOYBEANS & METALS

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SILVER VS GOLD

Silver is likely to outperform Gold prices in the coming months. Long-term chart of SILVER/GOLD suggests the ratio is at a major turning point. Multi-decade support reversed the ratio three times over the past two decades and this could be the fourth time. Reversal from the strong support in the past resulted in an approximately 1.5x-1.6x outperformance with the exception of 2.3x during 2009-2011 period.

SOYBEANS

Grains and beans complex is at a major turning point. Soybean price is trying to reverse from a multi-year trend support. Two long-term trend lines acted as support around 850 levels. Momentum indicator RSI formed positive divergence. This could prove to be a major low for Soybeans.

WHEAT

Similar price action can be seen on Wheat price. Last three year’s downtrend found support around 455 levels. Strong support can prove to be a turning point for the agricultural commodity.

CORN, WHEAT, SOYBEANS and OATS

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Agricultural commodities are testing their decade-long trend line supports and are likely to rebound in the coming months. Prices are expected to rebound from such strong trend supports and in most cases put in a medium/long-term bottom. Especially when more than one trend line overlaps around the same area, it increases the significance of that support.

Higher prices in agricultural commodities could bring back the memories of 2007 where food inflation and shortages were the main concerns of the public. Most of the agricultural commodities are back to 2006 levels. Given the significance of the long-term supports, agricultural commodities could see an increase in demand in the second half of the year.

You can find more information on these agricultural commodities by clicking the links here (CORN, WHEAT, OATS, SOYBEANS, SOYBEAN OIL).

CORN

1st month continuation CORN futures contract – WEEKLY SCALE

 

WHEAT

1st month continuation WHEAT futures contract – WEEKLY SCALE

 

OATS

1st month continuation OATS futures contract – WEEKLY SCALE

 

SOYBEANS

1st month continuation SOYBEANS futures contract – WEEKLY SCALE

 

SOYBEAN OIL

1st month continuation SOYBEAN OIL futures contract – MONTHLY SCALE