Wednesday, November 12, 2008

Wednesday Commodities Round-Up


Click for a larger image


On the weekly chart, notice the following:

-- Prices have moved through the lowest technical point on the chart of the last three years

-- All the SMAs are moving lower

-- The 10 and 20 week SMAs moved through the 50 week SMA

-- Prices are below all the SMAa

BUT

-- The RSI is showing an oversold reading, and

-- The MACD is approaching oversold

In addition, the market has sold off a ton



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Notice the following on the daily chart:

-- Prices have been dropping for three months

-- All the SMAs are moving lowerr

-- The shorter SMAs are below the longer SMAs

-- Prices are below all the SMAs

BUT

-- The MACD is rising, and

-- The RSI's readings are elevated

Bottom line: this chart looks like it wants to engage in a bear market rally.