Agricultural prices formed a price island over the last few weeks. However, over the last few days they have fallen from this area. Note that prices were right below the 200 day EMA far a few weeks but could not get over this hurdle. In addition prices are now below all the EMAs. However, the shorter EMAs are bunched together indicating a lack of direction.
Industrial metals are forming a price island after a long rally. Considering the higher level of volume on this gap compared to previous volume levels, this may be an exhaustion gap indicating the top of a rally. Metals have rallied in anticipation of economic recovery, so signs that the economy is not going to recover would add further downward pressure. There may also be the issue of the rally simply being a bit long in the tooth. In addition
The MACD has given a sell signal.
