Chart of the day: China’s rapeseed oil futures set for bull run
Recently I popped out to my supermarket in Britain to buy rapeseed oil as chefs voted it the best for all-round cooking. The fashion might also take off in China as the front-month futures contract on the Zhengzhou Commodity Exchange has crept up this year, admittedly from a low base. So, too, have volume, observed volatility and momentum, suggesting the first stages of a bull market. Price action in the third quarter of this year takes the form of a pennant and we are testing its upper edge. Moving averages are bullish and we are trading above the flat-topped Ichimoku cloud. With a little luck, the lagging line will get a lift from the sharply rising cloud of 26 weeks ago.
Nicole Elliott is a technical analyst