Stand up and salute that pennant!

It’s hard not to stand up and salute the flag. What true Canadian would not be moved by this sight:

Canada flagBut right now my car is sporting another flag, not through any lack of patriotism about Canada, but because we Canadians – yet again – failed to make the World Cup. So I have defaulted to cheering for our mother country, and the birthplace of both of my parents: England. (aka Old Blighty and Perfidious Albion). Here’s England’s flag:

The cross of St. George - look for it on the provincial flags of Alberta and Manitoba

The cross of St. George - look for it on the provincial flags of Alberta and Manitoba

Here it is modeled in paint and skin by Wayne Rooney – England’s best hope for goals in the World Cup.

RooneyThat’s the spirit, lad!!!!! Now score some goals against Slovenia tomorrow or I will descend into despair.

But rather than talking to you about a flag like this, I want to chat about pennants I seem to be seeing in our friendly little crop markets today. In both canola and oats you could argue that pennant formations have formed, and if that’s what they are, that’s good news.

Here they are:

Daily canola futures

Daily canola futures

Chicago daily oats futures

Chicago daily oats futures

Lots of you no doubt know what a pennant formation is, so you can assess yourself if that’s what those charts above seem to be showing. For those who don’t know what a pennant formation is, here’s a simple description: a triangular flag flying from a long flagpole. Like this:

kansas pennantAs my Canadian Securities Institute textbook on Technical Analysis says, a pennant is: “a chart formation in which prices move sharply to create a near vertical line (the flag pole) followed by a small move in the opposite direction; support and resistance lines within the pennant resemble a triangle; see flag

The good thing – from the prairie farmer’s perspective – is that pennants are continuation patterns, which means that the previous trend of the flagpole is expected to continue once the pennant has formed. To my semi-educated eye, both those charts above appear to be sketching out pennants, with lower highs and higher lows reaching towards an explosive collision point. Another leg up for canola oats seem to be suggested by these formations.

Of course, there are all sorts of other ways to analyze charts, and I haven’t taken the time to look at these charts in terms of candlestick formations or in Elliott Wave terms, but I’m going to allow myself to be hopeful that both canola and oats are setting up for another surge upwards. That’s a pennant worth saluting.

But everyone remember: during tomorrow’s World Cup match we all wave our St. George’s flags and follow the three rules I’ve been endlessly preaching to my two daughters, aged two-and-a-half and one-and-a-third:

1) Always cheer for England

2) Always cheer for England

3) Always cheer for England

(Unless, of course, they’re playing Canada, but that isn’t likely to happen any time soon.)

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