Monday, February 26, 2007

Will Commodities Rally Soon?

The charts from the metals got me thinking about the overall commodities situation. Here is the daily chart from Stockcharts:

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Notice the chart has broken through the downtrend started in early December. In addition, we have a nice strong uptrend that has broken through the moving averages. Finally, the 20 Day SMA has crossed the 50 day SMA -- another bullish sign.

Here's the weekly chart:

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On the weekly chart we've also broken through the downward sloping trend line, crossed a moving average and are in a strong uptrend. While we are far off our highs of last year, the trend appears to be heading up.