Insights and Stories of David Drozd

Oct. 17, 2008 at 12:45 am CDT

V-tops are one of the most difficult chart patterns to analyze because of the suddenness in which they form. A V-top indicates a trend reversal, with dynamic and substantial price drops often occurring with the formation of this pattern. V-tops have three essential components: Prices must be in an uptrend, […]

By David Drozd

Sep. 18, 2008 at 11:45 am CDT

There has been a lot of talk lately about the pressure the strengthening U.S. dollar is putting on commodity prices. To the extent that a higher U.S. dollar diminishes foreign buyers’ purchasing power, making U.S. goods more expensive, this is true. However, the rising dollar is not the only factor […]

By David Drozd

Aug. 27, 2008 at 1:07 pm CDT

The livestock sector breathed a sigh of relief when a “double top” formation appeared on the December 2008 Soybean Meal chart and accurately predicted the ensuing price decline. Just as the news is always the most bullish at the “top,” it was no coincidence that soybean meal prices peaked on […]

By David Drozd

Jul. 24, 2008 at 12:46 pm CDT

A “bull flag” formation appeared on the monthly crude oil chart in early March 2008, which accurately predicted the ensuing price advance to $147 per barrel. Flags are consolidation patterns within the existing price trend. In an uptrend, the formation truly resembles a flag. It stands atop a “flagpole” and […]

By David Drozd

Jun. 27, 2008 at 3:29 pm CDT

The fundamentals are playing catch-up to substantiate what the charts were predicting months ago. It was Jan. 2, 2008 and corn prices began the New Year trading above the previous month’s high. This higher opening created a “Gap” in price between the December high of $4.57 and January’s low of […]

By David Drozd