Wednesday, July 30, 2008

Wednesday Commodities Round-Up; CRB

On the weekly chart, notice the CRB has been in a rally since the end of last summer. Prices have continually moved higher, broken through key resistance areas and then consolidated gains after moving higher. However, prices dropped hard starting in July of this year. This is thanks to a variety of commodities dropping.

On the daily chart, notice the following:

-- Prices have dropped through the support line that started at the beginning of April

-- Prices are below all the SMAs

-- The 10 day SMA has moved below the 50 day SMA

-- The 20 day SMA is about to move below the 50 day SMA

-- The 50 day SMA is turning negative

-- Over the last 5 days, prices have leveled off

This chart is turning (or is) bearish now.