Wednesday, December 31, 2008

Wednesday Commodity Round-Up



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Notice the following on the weekly chart:

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are below all the SMAs

BUT

-- The MACD is oversold

-- The RSI is oversold

-- Prices are forming a triangle consolidation pattern



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Notice the following on the daily chart:

-- Prices have been dropping for the last 6 months

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are below all the SMAs

BUT

-- The MACD has been rising for the last two months

Bottom line: technically, this chart wants to rally. But there are no fundamental reasons to commit to the commodities market right now.