Wednesday, August 6, 2008

Wednesday Commodities Round-Up; CRB

I'm back. Edouard came and went. Frankly, it was really more of a day with a lot of rain and a bit of wind then anything else. I wanted to mention that our Mayor Bill White was great -- as usual. It's amazing what happens when people do their jobs well without a lot of fanfare. I wanted to thank all those who wished me well. That was also appreciated.

And now -- I present some charts of the CRB!

There's some extremely important news on this chart. The CRB was in a rally from the end of August of last year until the beginning of July this year. However, prices have since:

-- Broken the uptrend

-- Moved through price support established in March of this year

-- Moved through the 10 and 20 week SMA

-- Also note that prices have been using the 10 week SMA as technical support for the rally, yet have now moved below that level as well.

In other words, there have been some incredibly important technical developments on this chart that signal a change in direction.

On the daily chart, notice the following:

-- Price have broken through both upward sloping trend lines

-- Prices have moved below the 10, 20 and 50 day SMA

-- The 10 and 20 day SMAs are moving lower and have moved below the 50 day SMA

-- Last week prices ran into resistance at the 10 day SMA and couldn't move higher.

This is now a bearish chart.