Wednesday, February 18, 2009

Wednesday Commodities Round-Up

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Soybeans have tumbled in a big way. Notice that from their highs of last summer prices have dropped by about half. Also note the declining RSI indicating prices are continually weaker and the declining MACD indicating declining momentum. The SMA picture is weak as well. The 20 and 50 week SMAs are both moving lower. While the 10 week SMA has recently moved through the 20 week SMA, prices have dropped below all the SMAs indicating further weakness is ahead.

Gold has re-attained its safe have nluster. Note on the price chart that prices broke through the upper trend line of a consolidation pattern. This indicates buyer enthusiasm. Also note the rising MACD and RSI, indicating stronger moemntum and stronger prices. The SMA picture is interesting. First -- prices are above all the SMAs indicating all the SMAs will continue to move higher. The 10 week SMA just crossed the 50 week SMA while the 20 week SMA is still below the 50. In other words, we've got a ways to go before the SMAs line up into an extremely bullish alignment. Given the global uncertainty right now, gold may be the primary bull market going forward.