Wednesday, April 8, 2009

Wednesday Commodities Round-Up

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The industrial metals chart has the beginnings of a bull market. First, prices dropped hard at the end of last year, but then consolidated losses from the end of last year through the first quarter of this year. Now prices have moved through the upside resistance of the containment line. Also note the MACD is rising with plenty of room to run and the RSI is rising as well. The 10 day SMA has crossed over the 20 day SMA and is moving higher and prices are above the 10 and 20 day SMA.


Agricultural prices may be in a triangle consolidation and may have broken through the upside resistance line; we won't know firmly until the chart prints a few more bars. The SMA pricture does not clarify this at all; prices and the SMAs are congested with no clear direction. The MACD is moving higher, but if prices are in a trading range stochastics are a better indicator and they are neutral. RSI is rising, but it's a weak rise. Overall this is a chart that is still looking for direction.