Wednesday Commodities Round-Up

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Notice the following on the weekly chart:

-- Prices have dropped by 50% or more over the last few months

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are below all the SMAs

-- Prices are at or near their lowest level in over three years

BUT

-- The MACD is oversold, and

-- The RSI is oversold



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Notice the following on the daily chart:

-- Prices have been dropping for four+ months

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are right at the lowest SMAs

BUT

-- The MACD is rising, and

-- The RSI has moved above the oversold level

Bottom line: the technical indicators on both charts tell us a rally is possible. But the fundamental picture is still very dour -- there is continual talk of deflation and recession. This adds to the downward pressure on prices (and with good reason).