Chart of the day: Eggs make a frothy mix
Rather like a souffle that has risen nicely, egg futures on the Dalian exchange saw one of their biggest-ever weekly rallies, moving from just over 3,000 yuan to almost 4,000 yuan for a five-tonne contract. Since listing just less than three years ago, prices have been falling, capped by a neat trend line, which was categorically broken on Friday’s surge. Stopped by the top of a thinning Ichimoku cloud and the lagging line facing resistance at around 4,100 yuan (the top of the weekly cloud 26 periods ago), we expect consolidation over the next few weeks on either side of the psychological 4,000-yuan level. Then onwards and upwards because momentum is at its strongest in two years.
Nicole Elliott is a technical analyst