Wednesday, September 24, 2008

Wednesday Commodities Round-UP

OK -- back to the charts....

On the weekly CRB chart, notice the following:

-- Prices are below the all the SMAs

-- The 10 and 20 day SMA are both moving lower

-- The 10 day SMA has crossed below the 20 and 50 SMA

-- Prices have broken the uptrend started at the end of the summer last year and have fallen about 50% (that's an eyeballing computation).

Bottom line: the weekly chart is bearish.

On the daily chart, notice the following:

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- The 20 day SMA has acted as an important are of activity. While prices have moved above it, they have quickly retreated as well.

-- Prices have been dropping for three months.

Bottom line: this is a bearish chart as well