Futures traders are always looking to historical price patternsto predict future trends, but last week they were particularlyfocused on the last 40 trading days and the average of thosesettlement prices. Referred to as the 40-day, the prompt month’s40-day moving average has been an increasingly important indicatorfor those looking to predict a price move in the market. But boththe magnitude and duration of those swings have decreased in thepast several weeks, leading traders to hypothesize some of thedynamics in the market could be changing. Some of those changeshave been evidenced by the December contract’s inability to sustaina move much above or below the 40-day moving average in recentweeks. And last Friday was no different when the December contractrebounded 6.5 cents to settle at $2.459, just 1.4 cents below the40-day.
Patterns
Articles from Patterns
Inconsistent Regional Price Patterns Persist
Once again Tuesday the cash market tended to be stronger to theWest and weaker to the East, although neither region was a model ofconsistency. The West had a couple of flat points, while a few inthe East were flat to slightly higher.
October 14, 1998